ability to produce a good using fewer inputs compared to another producer

• comparative advantage

• opportunity cost

• absolute advantage

there is a move to a different point along the same demand curve caused only by a change in price

• changes in demand

• movement along the demand curve

comparing the productivity of one person/firm/nation to that of another

• absolute advantage

• opportunity cost

• comparative advantage

whatever must be given up to obtain some item

• absolute advantage

• comparative advantage

• opportunity cost

the ability to produce goods and services at a lower opportunity cost compared to another producer

• absolute advantage

• opportunity cost

• comparative advantage

the producer who has a higher opportunity cost is said to have a comparative advantage

• false

• true

trade can make everyone better off since it allows people to specialize in those activities which they have a comparative advantage

• true

• false

group of buyers and sellers of a particular goods or service

• demand

• supply

• market

• quantity demand

changes in price creates a change in the behavior of consumers

• true

• false

the desire to purchase goods and willingness to pay a specific price for them

• demand

• supply

• price

• quantity demand