Chapter 2 Flashcards
1
Q
The ability to produce the same good using fewer inputs than another producer is…
A
Absolute Advantage
2
Q
Producing goods at the lowest opportunity cost compared to another producer is…
A
Comparative Advantage
3
Q
The ______ of a good is the amount of the other good given up.
A
Opportunity Cost
4
Q
Shows all the combinations of goods that a country can produce given its productivity and supply of inputs.
A
PPF (Productions Possibilities Frontier)
5
Q
The slope of the ppf is the opportunity cost of the slope in the ______
A
x axis
6
Q
The country by itself cannot get outside the ppf, however, ______ can cause the country to move outside the ppf.
A
Trade
