Card Set Information
Chapter 1,2,3,5 test 1
goods and services sold to
Goods and services purchased
from other countries are
phenomenon of growing economic
linkages among countries
Ricardian model of international trade
assumption that opportunity costs
are constant within a country, but
different between countries.
situation in which a country
cannot trade with other countries.
country has a comparative advantage
in a good whose production is
intensive in the factors that are
abundantly available in that country.
production of a good is a measure
of which factor is used in relatively
greater quantities than other factors in
Many buyers and sellers
Same good or service from the point
of view of the consumer
No artificial barriers to entry or exit
shows how much of a good or
service consumers will want to
buy at different prices.
actual amount consumers are
willing to buy at some specific price
law of demand
higher price for a good, other things
equal, leads people to demand a
smaller quantity of the good