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Absolute advantage
The ability to produce something more efficiently
Capital
Productive equipment or machinery
Comparative advantage
The ability to produce something with a lower opportunity cost
Economics
A social science that studies how resources are used and it's often concerned with how resources can be used to their fullest potential
Efficiency
Using resources to their maximum potential
Labor
All human activity that is productive
Land
All natural resources
Law of increasing costs
Law that states that when more of a product is initially being produced, the higher the opportunity cost will be to produce still more
Macroeconomics
Economic problems encountered by the nation as a whole
Microeconomics
Economic problems faced by individual units within the overall economy
Normative economics
Economics involving value judgments
Opportunity cost
The amount of one good that must be sacrificed to obtain an alternative good
Opportunity cost of good x=
Change in good Y production/Change in good X Production
Positive economics
Economics analysis that draws conclusions based on logical, deduction or induction value judgments are avoided
Production possibilities frontier
The combination of two goods that can be produced if the economy uses all of its resources, fully and efficiently
Resource
Anything that can be used to produce a good or service
Terms of trade
The amount of one good a country is willing and able to trade for another
Note 
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