International Trade

Question 1

absolute advantage

Answer 1

the ability to produce a good or service more efficiently than another country can produce the same good or service

Question 2

comparative advantage

Answer 2

the ability to produce a good or service at a lower opportunity cost than another country

Question 3

dependent

Answer 3

requiring or relying on something

Question 4

specialization

Answer 4

the act of limiting the kinds of goods and services produced