Economics 101 Vocabulary and Definitions

Economics 101 Vocabulary and Definitions - (trade). 3....

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Economics 101 Vocabulary and Definitions 1. Opportunity Cost: The opportunity cost of making a choice is the value of the next best alternative that you had to forego. Value can be either money or utilities. 2. Absolute advantage: Produce a good with fewer resources than a competitor
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Unformatted text preview: (trade). 3. Comparative advantage: Lower opportunity costs (trade). 4. Autarky: No trade. 5. Price floor: keeping the price above the equilibrium level. Ex. Minimum wage. 6. Price ceiling: Keeping the price below the equilibrium level. Ex. Rent control 7....
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