Term
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Definition
| One person has an absolute advantage over another if he/she takes fewer hours to perform a task than the other person. |
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Term
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Definition
| One person has a comparative advantage if his/her opportunity costs of performing a task is lower than the other person's opportunity cost. |
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Term
| Production Possibilities Curve |
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Definition
| A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. |
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Term
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Definition
| Any combination of goods that can be produced using currently available resources. |
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Term
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Definition
| Any combination of goods that cannot be produced using currently available resources |
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Term
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Definition
| Any combination of goods for which currently available resources enable an increase in the production of one good without a reduction in the production of the other. |
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Term
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Definition
| Any combination of goods for which currently available resources do not allow an increase in the production of one good without a reduction in the production of the other. |
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Term
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Definition
| A term increasingly used to connote having services performed by low-wage workers overseas. |
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