Chapter Three: Interdependence and Gains from Trade Flashcards
1
Q
Absolute Advantage
A
The comparison among producers of a good according to their productivity
2
Q
Comparative Advantage
A
The comparison among producers of a good according to their opportunity cost
3
Q
Imports
A
Goods and services produced abroad and sold domestically
4
Q
Exports
A
Goods and services produced domestically and sold abroad
