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Absolute advantage
________ is the ability to produce something with fewer resources or to produce more with the same resources as another producer.
Comparative advantage
________ is the ability to produce a good or service at a lower opportunity cost than another producer.
Models
________ are used in economics and most other sciences to represent reality.
Normative economics deals
________ with value judgments and decisions regarding how things should be.
Positive economics
________ is more objective and provides descriptions of how things are.
production possibilities model
The ________, is one of the most basic and useful models in economics.
the three basic economic questions
What to produce How to produce it? For whom to produce?
Note 
Flashcard (49)