Method for determining comparative advantage that measures what goes into production by using the formula IOU (Other goes Under)

The “place” where resources (land, labor, capital, and entrepreneurship) are sold to businesses

The “place” where goods and services produced by businesses are sold to households

Payment for the factors of production, namely rent, wages, interest, and profit

Method for determining comparative advantage that measures what is produced by using the formula OOO (Other goes Over)

The producer with the lowest opportunity cost

When the government redistributes income

Any point on the PPC representing products that are being produced in the least costly way

The producer that can produce the most output OR requires the least amount of inputs (resources)

The most optimal point on the PPC representing products that are being produced are the ones most desired by society

The producer with the lowest opportunity cost

When the government redistributes income

Any point on the PPC representing products that are being produced in the least costly way

The producer that can produce the most output OR requires the least amount of inputs (resources)

The most optimal point on the PPC representing products that are being produced are the ones most desired by society