Examlex
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Production Possibilities
The various combinations of goods and services that can be produced by an economy given its available resources and technology, illustrating potential trade-offs and efficiency.
Comparative Advantage
An economic principle that states a country should produce and export goods for which it is more efficient at producing than other countries, and import goods that it is less efficient at producing.
Terms of Trade
The ratio of an index of a country's export prices to an index of its import prices, affecting the balance of trade.
Production Possibilities
The different combinations of goods and services that an economy can produce given its available resources and technology, typically represented by a curve.
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