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ECO 210-003 Chapter 3

ECO 210-003 Chapter 3 - has the smaller opportunity cost of...

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ECO 210-003 Chapter 3: Interdependence and the Gains from Trade Absolute Advantage – when comparing the productivity of one person, firm, or nation to that of another Opportunity Cost – some item is what we give up to get that item Comparative advantage – the who gives up less of the other goods to produce Good X
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Unformatted text preview: has the smaller opportunity cost of Producing Good X and is said to have a comparative advantage in producing it. Imports – Good produced abroad and sold domestically Exports – Goods produced domestically and sold abroad...
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