The flashcards below were created by user
One person has an absolute advantage over another if he or she takes fewer hours to perform a task than the other person does.
Any combination of goods that can be produced using currently available resources.
One person has a comparative advantage over another if his or her opportunity cost of performing a task is lower than the other person's opportunity cost.
Any combination of goods for which currently available resources do not allow an increase in the production of one good without a reduction in the production of the other.
Any combination of goods for which currently available resources enable an increase in the production of one good without a reduction in the production of the other.
production possibilities curve
A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good.
Units of output per hour divided by units of input per hour.
Any combination of goods that cannot be produced using currently available resources.
ch2 key terms econ