Chapter 3 Trade

Question 0

Imports

Answer 0

Goods produced abroad and sold domestically

Question 1

Export

Answer 1

Goods produced domestically and sold abroad

Question 2

Absolute advantage

Answer 2

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

Question 3

Comparative advantage

Answer 3

The ability to produce a good at a lower opportunity cost than another producer

Question 4

Opportunity cost “formula”

Answer 4

Cost:other product/cost of og