Vocabulary
Practice the vocabulary words from the lesson.
1. When a nation, business or individual can produce a good or service more efficiently than another entity
Answer: Absolute Advantage
2. When a nation has a lower opportunity cost than another nation
Answer: Comparative Advantage
3. The price of a good or service that must be given up to obtain another good or service
Answer: Terms of Trade
4. When a person or country uses the available resources to make a certain good with the idea of trading that good for other goods or services
Answer: Specialization
5. The value of what is given up when one activity is chosen over another
Answer: Opportunity Cost