Chapter 3 Flashcards

1
Q

Production Possibilities

A

Shows the possibilities of goods that can be produced

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2
Q

Absolute Advantage

A

The ability to produce a good using fewer inputs than another producer

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3
Q

Opportunity Cost

A

What you give up to obtain some other item

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4
Q

Comparative advantage

A

Being able to produce a item at a lower opportunity cost

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5
Q

Imports

A

Goods being produced abroad that a country buys and sells domestically

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6
Q

Exports

A

Good that a country produced domestically then sells internationally

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