Lec: 7-3 "Gains From Trade" Flashcards
1
Q
Graph of potential allocations of time
A
Production Possibilities Fronteir
2
Q
Produce more of goods than others with the same resources
A
Absolute Advantage
3
Q
Produce a greater amount of a good with the same resources this is the basis of international trade.
A
Comparative advantage
4
Q
Leads to gains in trade between to entities
A
Specialization
5
Q
Exchange between two specialized entities leads to this point
A
Trade Consume
6
Q
No trade, by “yourself” equality of allocation not efficiency
A
Autarky
7
Q
Result, gain from trade
A
Pareto Improvement
8
Q
Scale Economies produce certain aspects of products
A
International Distribution of Labor
