AP Macroeconomics: Unit 1 - Module 4: Comparative Advantage And Trade

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

opportunity cost

As long as people have different _____, everyone has a comparative advantage in something, and a comparative disadvantage in something.

less

People are willing to trade if the "price" of the good each person is obtaining from trade is _____ than his opportunity cost of producing the good himself.

Comparative advantage

The production possibilities curve model is useful for illustrating gains from trade: trade based on _____.

Specialization

_____ is a situation in which people engage in a different task that he or she is good at performing.

Absolute Advantage

_____ is when an individual can make more of a good or service with a given amount of time and resources.

Gains from Trade, specialization

_____ is when people can get more of what they want through trade than they could if they tried to be self-sufficient. It arrises from _____.

Comparative Advantage

_____ is when the opportunity cost is lower for the individual than for the other people.

Trade

_____ provides goods and services to others and receives goods and services in return.

Markets

are what allow someone to specialize in their respective fields


Ensembles d'études connexes

7. Organophosphates and carbamates

View Set

Computer Science 100 quizzes 1-10 review -- New Perspectives on Computer Science 2016

View Set

CoursePoint+ Chapter 9: Pain Management

View Set

MGT 291- Oakenfull Exam 1 Quiz Questions

View Set

Advantages and Disadvantages of Franchising

View Set

Physics - learning catalytics midterm 2

View Set

Chapter 38 and 39 PrepU Questions

View Set