Chapter Two Flashcards
0
Q
Relative price
A
The quantity of some other good that can be exchanged for a specified quantity if a given good.
1
Q
Absolute price
A
The number of dollars that can be exchanged for a specified quantity of a given good.
2
Q
In economics, the single word _______ always refers to a relative price.
A
Price
3
Q
Inflation
A
An ongoing rise in the average level if absolute prices.
4
Q
Cost
A
A forgone opportunity
5
Q
Comparative advantage
A
The ability to perform a given task at a lower cost.
6
Q
More efficient
A
Able to perform a given task at lower cost, having comparative advantage.
