Module 1.3: Absolute Advantage, Comparative Advantage, Terms of Trade

Question 1

Opportunity Cost / Units Gained

Answer 1

Per Unit Opportunity Cost

Question 2

The producer that can produce the most output OR requires the least amount of input (resources)

Answer 2

Absolute Advantage

Question 3

The producer with the lowest opportunity cost

Answer 3

Comparative Advantage

Question 4

of things produced in a certain amount of time
equation: OOO= Output: other goes over

Answer 4

Output questions

Question 5

Time it takes to produce 1 thing
equation: IOU= Input: other goes under

Answer 5

Input questions