TERM 1
Labor
Productivity
DEFINITION 1
the number of units of output that a worker can produce in
one hour.
TERM 2
Absolute Advantage
DEFINITION 2
being better at producing a product. Doing more and faster
TERM 3
Opportunity Cost
DEFINITION 3
the amount of production of the other product that is given
up. Tiger woods is good at mowing the lawn, but taking time
away from golfing by mowing the lawn.
TERM 4
Principle of Comparative Advantage
DEFINITION 4
a country will export the goods that it can produce at a low
opportunity cost and import goods that would be produced at
a high opportunity cost.
TERM 5
Relative Price
DEFINITION 5
the ratio of one product price to another product price
