Vocab- Chap 3, 4 - Chapter 3 Absolute Advantage- the...

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Chapter 3 - Absolute Advantage- the ability to produce a good using fewer inputs than another producer - Comparative Advantage- the ability to produce a good at a lower opportunity cost than another producer - Imports- goods produce abroad and sold domestically - Exports- goods produce domestically and sold abroad Chapter 4 - Market - a group of buyers and sellers of a particular good or service - Competitive market - a market in which there are many buyers and many sellers so that each has a negligible impact on the market price - Quantity demanded - the amount of a good that buyers are willing and able to purchase - Law of demand - the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises - Demand schedule - a table that shows the relationship between the price of a good and the quantity demanded - Demand curve - a graph of the relationship between the price of a good and the quantity demanded - Normal good - a good for which, other things equal, an increase in income leads to an
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This note was uploaded on 03/14/2008 for the course ECON 1110 taught by Professor Wissink during the Fall '06 term at Cornell University (Engineering School).

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Vocab- Chap 3, 4 - Chapter 3 Absolute Advantage- the...

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