absolute advantage ; an advantage derived from one country having a lower absolute input cost of producing a particular good than another country
abnormal profit; total revenue less total costs except for the opportunity cost of capital; revenue less costs except opportunity costs of owner’s capital
adaptive expectation; an expectation formed on the basis of information collected in the past
adverse selection; a situation where a lack of information causes low-quality items to dominate a market and highquality items to be driven out of the market
aggregate demand curve; a curve that shows the different equilibrium levels of expenditures at different price levels
aggregate supply curve; a curve that shows the amount of production at different price levels
antitrust laws ; rules of behavior prescribed by the government
Asian tigers; Hong Kong, Korea, Singapore, and Taiwan; countries that globalized in the 1960s and 1970s and experienced fast economic growth
automatic stabilizer ; an element of fiscal policy that changes automatically as income changes
average revenue; per unit revenue, total revenue divided by quantity
average total costs (ATC); total cost divided by the total output per unit costs, total costs divided by quantity
