Macroeconomics Chp 3: PPF – Flashcards
13 test answers
Unlock all answers in this set
Unlock answers 13question
If each agent has an absolute advantage over one good
answer
then they each should have the competitive advantage over that good
Unlock the answer
question
What should a person specialize according to?
answer
Comparative Advantage
Unlock the answer
question
Absolute Advantage
answer
ability to produce a good using fewer inputs than another producer
Unlock the answer
question
Comparative Advantage
answer
ability to produce a good at a lower opportunity cost than another producer (reflects the relative opportunity cost)
Unlock the answer
question
How many goods does a Production Possibility Frontier deal with?
answer
2 goods
Unlock the answer
question
Production Possibility Frontier
answer
graph that calculates total resources
Unlock the answer
question
After calculating the opportunity cost on a PPF, is your answer a quanity or a resource?
answer
quantity
Unlock the answer
question
Why do you calculate the opportunity cost from a PPF?
answer
To find what agent should specialize in which good
Unlock the answer
question
Ex: If you are calculating the opportunity cost for potatoes, where would you put the potatoes? (deals with equation)
answer
Denominator
Unlock the answer
