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VocabularyEdit

Absolute Advantage

  • Definition: The ability to produce a good using fewer inputs than another producer.
  • What It Means:

Opportunity Cost

  • Definition: Whatever must be given up to obtain some item.
  • What It Means:

Comparative Advantage

  • Definition: The ability to produce a good at a lower opportunity cost than another producer.
  • What It Means:

Imports

  • Definition: Goods produced abroad and sold domestically.
  • What It Means:

Exports

  • Definition: Goods produced domestically and sold abroad.
  • What It Means: