Chapter 3 - Interdependence and the Gains from Trade Flashcards Preview

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Flashcards in Chapter 3 - Interdependence and the Gains from Trade Deck (5)
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1

Opportunity cost

Whatever must be given up to obtain some item

2

Comparative advantage

The ability to produce a good at a lower opportunity cost than another producer

3

Imports

Goods produced abroad and sold domestically

4

Exports

Goods produced domestically and sold abroad

5

Absolute advantage

The ability to produce a good using fewer inputs than another producer