Chapter 3 Flashcards
1
Q
Production Possibilities
A
Shows the possibilities of goods that can be produced
2
Q
Absolute Advantage
A
The ability to produce a good using fewer inputs than another producer
3
Q
Opportunity Cost
A
What you give up to obtain some other item
4
Q
Comparative advantage
A
Being able to produce a item at a lower opportunity cost
5
Q
Imports
A
Goods being produced abroad that a country buys and sells domestically
6
Q
Exports
A
Good that a country produced domestically then sells internationally