AP®︎ Microeconomics: Topic 1.4 Flashcards

The ability to produce more output or use fewer resources than another producer.

The ability to produce a good or service at a lower opportunity cost.

The value of the next best alternative given up when a choice is made.

Concentrating production on the good with the lowest opportunity cost.

Increased consumption beyond a producer's PPC after specializing and exchanging.

A producer exports the good with lower opportunity cost and imports the other good.

The exchange rate between goods that must fall between both producers' opportunity costs.

Comparative advantage questions use either maximum output data or resource-per-unit input data.

Output uses higher production, while input uses fewer resources and different opportunity-cost formulas.