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absolute advantage
refers to the ability to make something using fewer resources than other producers use.
PPF
The production possibilities frontier, or ________, depicts an economy's productive capacity when all resources are utilized efficiently.
time consuming
Because learning about alternatives is expensive and ________, some decisions are made on the basis of incomplete or even incorrect information.
law of comparative advantage
According to the ________, the person who has the lowest opportunity cost of creating a certain item should specialize in that good.
Comparative advantage
________ focuses on what else those resources could generate- that is, on the opportunity cost of those resources.
PPF
The ________ can migrate in and out of play over time as a result of changes in resource availability, technology, or game regulations.
comparative advantage
Most individuals eat just a small portion of what they produce and generate only a small portion of what they consume due to specialization and ________.
Comparative advantage
________ is a superior criterion for determining who should do what.
Opportunity cost
value of the best alternative is forgone when an item or activity is chosen
Sunk cost
A cost that has already been incurred, cannot be recovered, and thus is irrelevant for present and future economic decisions
Note 
Flashcard (40)