Comparative and Absolute Advantage

Front

A benefit, profit, or value of something that must be given up to acquire or achieve something else.

Back

Opportunity Cost

Front

The benefit or advantage of an economy to be able to produce a commodity at a lesser opportunity cost than other entities is referred to as

Back

Comparative Advantage

Front

Opportunity Cost is often measured in?

Back

Production Time

Front

The nation's ability to produce general goods more efficiently than another entity is referred to as?

Back

Absolute Advantage

Front

To figure out a nation's comparative advantage, you compare their _________ to other entities?

Back

Opportunity Cost

Front

What promotes cheaper production costs, and the nation's economies are able to benefit?

Back

Comparative Advantage

Front

If Japan and the United States can both produce cars, but Japan can produce cars of a higher quality at a faster rate, then it is said to have an _____________________ in the auto industry.

Back

Absolute Advantage

Front

France has enough resources to produce wine or cheese, but not enough to produce both. France can produce 20 units of wine or 10 units of cheese. In this situation, France should produce wine due to ________________

Back

Opportunity Cost

Front

France can produce 20 units of wine or 10 units of cheese. Italy can produce 30 units of wine or 22 units of cheese. Italy has the ______________

Back

Absolute Advantage

Front

Why will France produce wine instead of cheese?

Back

Comparative Advantage