econ

An economy that has the lowest opportunity cost for producing a particular good is said to have:

a comparative advantage.

A simplified representation that is used to study a real situation is called:

a model.

The models used in economics:

emphasize basic relationships by abstracting from complexities in the everyday world.

Trade can be beneficial to an economy because:

more goods and services can be obtained at lower opportunity cost.

Trade takes the form of ________ when people directly exchange goods that they have for goods they want.

barter

The process observed when an economy's production possibility frontier is shifted outward is:

economic growth

All points on the production possibility frontier are:

efficient production points.

Economists are generally in support of:

free international trade.

All points outside the production possibility frontier are:

infeasible production points.

The opportunity cost of production:

is what you give up to produce the good.

The concept of comparative advantage is based upon:

relative opportunity costs.

A production possibility frontier illustrates the ________ facing an economy that ________ only two goods.

trade-offs ; produces