Comparative Advantage and Gains from Trade (HSC SSCE Economics): Flashcards

Max exports, min imports to accumulate precious metals

The Wealth of Nations

Producing greater quantity with same resources than another economy

Specialising in goods/services with lower opportunity cost

Cheese divided by Grapes

Impossible - if better at one, worse at other

Economy not engaging in international trade

Lies above production possibilities curve

Export prices relative to import prices

Workers can't easily shift between industries/locations