absolute and comparative advantage Flashcards
1
Q
what is pareto optimum
A
a situation where nobody can be made better off without making someone worse off
2
Q
comparative advantage
A
can produce goods/services more efficiently than competition
3
Q
absolute advantage
A
can produce a greater quantity of a good/service with the same amount of resources
4
Q
sources of comparative advantage
A
- innovation
- climate
- capital stock
- natural resources
- institutional framework
- demographics and human capital
