Gains from Trade Flashcards
1
Q
The benefits that come from reallocating resources, goods, and services to better uses.
A
Gains From Trade
2
Q
The ability to do a task using fewer inputs.
A
Absolute Advantage
3
Q
The ability to do a task at a lower opportunity cost.
A
Comparative Advantage
4
Q
- A signal
- An incentive
- A bundle of information
A
Price
5
Q
Markets whose payoffs are linked to whether an uncertain event occurs.
A
Prediction Markets
6
Q
Markets within a company to buy and sell scarce resources.
A
Internal Markets
7
Q
When knowledge needed to make a good decision is not available to the decision maker.
A
Knowledge Problem
