Topic 1:

Question 1

Corporative advantage.

Answer 1

Producing products or services at a lower opportunity cost than the trading partners.

Question 2

Opportunity cost.

Answer 2

The potential benefit that a business or individual misses out while choosing something else.

Question 3

Absolute advantage.

Answer 3

When one company produces more or better goods than something else.

Question 4

Specialisation.

Answer 4

Countries should specialise in the production of goods where they have cooperative advantage and trade for goods where they are less efficient.