The ability of a country to produce more of a good using the same or fewer resources as another country

producing more of a product in a country is the amount of production of the other product that is given up

as one industry expands at the expense of others, increasing amounts of the other products must be given up to get each extra unit of the expanding industry's product

predicts that a country exports the product (or products) that uses its relatively abundant factor(s) intensively and imports the product (or products) that uses its relatively scare factor(s) intensively.

states that given certain conditions and assumptions, including full adjustment to a new long-run equilibrium, and event that changes relative product prices in a country unambiguously

Developed Absolute Advantage, promoted free trade, and compared household production to national production

a country will export the goods and services that it can produce at a low opportunity cost and import the good and services that it can produce at a high opportunity cost

opportunity cost curve and marginal cost curve

a country has a higher ratio of labor to other factors than does the rest of the world

The more a factor is specialized, or concentrated, in the production of a product whose relative price is rising, the more this factor stands to gain from the change in the product price

the more a factor is concentrated into production of a products whose relative price is falling, the more it stands to lose from the change in product price

number of units of output that a worker can produce in an hour

the ratio of one product price to another product price

The various combinations of consumption quantities that lead to the same level of well-being or happiness

a product has this if labor costs are a greater share of its value than they are of the value of other products

states that given certain conditions and assumptions, free trade equalizes not only product prices but certain conditions and assumptions, free trade equalizes not only product prices but also the prices of individual factors between the two countries

European philosophy that believed exports were good, imports were bad, obtaining more gold and silver was important to the wealth of the nation, and trade was a zero-sum activity.

buying at the low price in one place and selling at the high price in another place

shows how the economic well-being of a whole group depends on the whole group's consumption of products

period where laborers, plots of land, and other inputs are tied to their current lines of production

this country is relatively abundant in highly skilled labor and physical capital

these three men believed labor was the basis of value of a product

shows all combinations of amounts of different products that an economy can produce with full employment of its resources and maximum feasible productivity of these resources

gains from trade depend on this. the price the country receives from foreign buyers for its export products, relative to the price that the country pays foreign buyers for its export products

factors that can move between sectors in response to differences in returns

This country is relatively abundant in forestland