Economics Topic 10.1 & 10.2 Flashcard

Front

the condition that exists when someone can produce a good or service using fewer resources than someone else

Back

Absolute advantage

Front

the condition that exists when someone can produce a good or service at a lower opportunity cost than someone else

Back

Comparative advantage

Front

the development of skills or knowledge in one aspect of a job or field of interest

Back

Specialization

Front

An athletic person picks fruit, and their sociable friend sells the fruit. This is an example of

Back

division of labor.

Front

When countries specialize and trade, they

Back

become economically interdependent.

Front

When does a person have a comparative advantage?

Back

when they have a lower opportunity cost than others

Front

Which of the following is true of the American economy and trade? Most Americans experience benefits from global trade. Global trade increases the prices of non-American goods. Most Americans are hurt economically by global trade. Global trade causes most Americans to lose their jobs

Back

Most Americans experience benefits from global trade.

Front

How can global trade function as a disadvantage for some people?

Back

It can take business away from local producers.

Front

How does trade increase the variety and quantity of goods available?

Back

Trade provides access to goods from around the globe.

Front

Which of the following could contribute to a nation having a comparative advantage over another nation?
lots of forest, better education, a warmer climate, All answers are correct

Back

All answers are correct