Module 2 Specialization Flashcards by Vicki schenk | Brainscape

Q

What are gains from trade?

A

Consume more than produced

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Q

What does opportunity cost measure?

A

Forgone alternative value

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Q

What does the value chain describe?

A

Production stages of a good

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Q

What is Absolute Advantage?

A

Fewer resources used

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Q

What does Comparative Advantage refer to?

A

Lower opportunity costs

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Q

What is Inter-Industry Trade?

A

Trade across different industries

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Q

What is Intra-Industry Trade?

A

Trade within the same industry

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Q

What is intra-industry trade?

A

Trade in autos

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Q

What happens when you choose one activity?

A

Give up another

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Q

What are the types of opportunity costs?

A

Explicit or implicit

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Q

What is splitting up the value chain?

A

Different stages in diverse locations

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Q

Example of Absolute Advantage?

A

Canada in autos

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Q

If a meal costs $10, what is given up by choosing it?

A

Spending on another activity

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Q

What are tariffs?

A

Taxes on traded goods

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