Unit 3

Question 1

The ability to produce a good using fewer inputs than another producer

Answer 1

Absolute advantage

Question 2

Whatever must be given up to obtain some item

Answer 2

Opportunity cost

Question 3

The ability to produce a good at a lower opportunity cost than another producer

Answer 3

Comparative advantage

Question 4

Goods produced abroad and sold domestically

Answer 4

Imports

Question 5

Goods produces domestically and sold abroad

Answer 5

Exports