Economics Unit 2 Vocab Flashcard

Front

Comparative advantage?

Back

The producer with the lowest opportunity cost.

Front

Law of Supply

Back

Producers will offer more for sale at higher prices.

Front

Equilibrium price?

Back

Price at which supply meets demand.

Front

What is a trade bloc?

Back

smaller, local trade organizations

Front

Shortage occurs when demand exceeds supply.

Back

there is more demand than supply

Front

Price ceiling:

Back

the highest legal price – creates a shortage

Front

What is demand?

Back

the desire, ability, and willingness to buy a product

Front

What is a revenue tariff?

Back

Designed to make money for the government.

Front

Foreign Exchange

Back

The buying and selling of currencies of different nations.

Front

Absolute advantage:

Back

The producer that can produce the most output or requires the least inputs.