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