ch 3

• ability to produce a good using fewer inputs than another producer
• if each country has an abs advantage in one good & specializes in that good then both countries can gain from trade

ability to produce a good at a lower opp cost than another producer

• put item they ask for on the bottom
• if the give you one items opp cost then the reciprical is the opp cost of the other item

a combo of two goods that an eco can produce using all available resources and technology

produce inside its ppf

allows each country to consume at a point outside its ppf