Ch. 8 Flashcards
1
Q
absolute advantage
A
the ability to do a task using fewer inputs
2
Q
comparative advantage
A
The ability to do a task at a lower opportunity cost
3
Q
gains from trade
A
The benefits that come from reallocating resources, goods and services to better uses
4
Q
internal markets
A
markets within a company to buy and sell scarce resources
5
Q
knowledge problem
A
when knowledge needed to make a good decision is not available to the decision maker
6
Q
prediction market
A
7
Q
specialization
A
Focusing on specific tasks
