j slatt

Question 1

absolute advantage

Answer 1

being able to produce more of something than another country

Question 2

competitive advantage

Answer 2

able to produce something for a lower opportunity cost than another country

Question 3

consumer surplus

Answer 3

the difference between what you are willing to pay and what you have to pay

Question 4

producer surplus

Answer 4

difference between what the producer are willing to supply and what they actually produce