ECON 101- Final Exam Guide - Comprehensive Notes for the exam ( 77 pages long!)
Document Summary
This requires us to give up something we value: leisure duce goods or services ies can increase output roduction of goods and. Law of comparative advantage: the proposition that the joint output of trading pa greatest when each good is produced by the low opportunity cost producer. Implies that trading partners can gain by specializing in the production of go at a relatively low opportunity cost and trade for goods they could only prod high opportunity cost. Sources of gains from trade y different workers g partners will be f goods they can produce produce at a relatively ndividuals, firms, regions, ale p. In a democracy, political decision makers have to consider how their actions ssible for people to ale production processed, methods er per unit costs ore from existing output lized decisions of private nt) to decide what, how, ing assets and directly ions will influence their.
