Comparative and Absolute Advantage Flashcards
1
Q
absolute advantage
A
the ability of one party to produce one good or service at a lower price than any competitor
2
Q
comparative advantage
A
the ability of one party to produce one good or service at a lower opportunity cost than any competitor
3
Q
erricient
A
completed in the fastest time using the fewest resources possible
4
Q
opportunity
A
a favorable occasion to complete or participate in something
5
Q
specialization
A
the act of limiting the kinds of goods and services produced
