Term
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Definition
| Quantities of two goods consumed to maximize consumers' utility. |
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Term
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Definition
| An income line corresponding to the production equilibrium point. |
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Term
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Definition
| An increase in social welfare through international trade. |
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Term
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Definition
| A curve representing alternative quantities of two goods to be produced that generate a certain level of national income. |
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Term
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Definition
| Cost of production of a good in term of alternative goods. |
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Term
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Definition
| The direction of goods traded between two countries |
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Term
| Principle of absolute advantage |
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Definition
| Export opportunity based on lower production cost |
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Term
| Principle of comparative advantage |
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Definition
| Export opportunity based on lower production cost relative to other goods |
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Term
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Definition
| A curve representing alternative quantities of two goods that can be produced with given resources |
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Term
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Definition
| A curve representing all combinations of goods that the economy can consume to obtain the same level of social utility |
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Term
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Definition
| The ratio of the export commodities to the price of import commodities. |
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