| A | B |
|---|
| discretionary spending | SPENDING for federal programs - must recieve ANNUAL AUTHORIZATION |
| opportunity cost | COST of NEXT BEST alternative use of money, time, resources |
| demand side economics | Believe ECONOMIC STABILITY can be achieved by STIMULATING aggregate DEMAND |
| absolute advantage | COUNTRY'S ability to produce more of a given product than another COUNTRY |
| comparative advantage | COUNTRY'S ability to produce a given product RELATIVELY MORE EFFICIENTLY than another COUNTRY |
| trade barriers | tariffs and quotas |
| fixed costs | COST of production that DOES NOT CHANGE when output changes |
| variable cost | production COST that VARIES (changes) as output changes |
| flat tax | PROPORTIONAL tax on income AFTER a specified THRESHOLD has been reached |
| federal debt | total amount of money the federal govt has BORROWED |
