Question

Define the following terms:(3 lines each) =>No Copy Paste.Websites to write in your own words.
a. Opportunity Cost
b. Comparative Advantage
c. Autarky
d. Tariff
e. Producer Surplus

Answer 1

.a) opportunity cost - Opportunity cost refers to a benefit that a person Foregone but gave up, to take another course of action or out is the cost of not choosing the other alternative

b) comparative advantage - it is an economic concept which states that producing goods or services at a lower opportunity cost with the given factors. Country's should specialise only in those goods in which it has comparative advantage.

c) autarky- autarky refers to an economic situation in which there is a closed economy and no international trade is allowed. The country is said to be autarky if it is self sufficient.

d) tariff - tariff is the tax which is generated Or imposed by the government on imports and exports in order to raise the revenue or surplus. It basically restricts or limit the imports by increasing the price of the good

e) producer surplus -it is the area below the price and above the supply curve. It is difference between the price at which producer is willing to sell the good and what he actually receives for the good.