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
Q

Opportunity cost

A

Whatever must be given up to obtain some item

2
Q

Comparative advantage

A

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

3
Q

Imports

A

Goods produced abroad and sold domestically

4
Q

Exports

A

Goods produced domestically and sold abroad

5
Q

Absolute advantage

A

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