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January 18 notes

January 18 notes - Online Quizzes email results to TA...

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January 18, 2006 Online Quizzes, email results to TA. http://wps.prenhall.com/bp_hubbard_macro_1 Click on chapter number for quizzes Quiz Dates Monday February 6 Monday April 3 Check totale.usc.edu Chapter 2 Continued Economic Growth : the ability of the economy to produce increasing quantities of goods and services. Trade : the act of buying or selling. A point outside the curve: with the same resources, you are able to produce more and you’re better off. o To move from a point on the PPF to a point outside of the PPF: Trade. Absolute Advantage : the ability of an individual, firm, or country to produce more of a good or service than competitors using the same count of resources. Comparative Advantage : the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers. Comparative Advantage and the Gains from Trade The basis for trade is comparative advantage and not absolute advantage.
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