Unit One Lesson Four Economics

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

• Specialization

• Absolute advantage

• Barter

• Money

the direct exchange of goods or services without the use of money; a typical feature of traditional economies

• Capital

• Money

• Barter

• Economy

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

• Comparative advatange

• Specialization

• Absolute advantage

• Division of labor

the allocation of separate tasks to different people, based on the principle of specialization

• Barter

• Market economy

• Voluntary Exchange

• Division of labor

the characteristic of a society in which people rely on others for most of the goods and services they want

• Barter

• Law of Marginal Utility

• Economic Interdependence

• Utility

a generally accepted medium of exchange that can be traded for goods and services or used to pay debts

• Credit card

• Money

• Barter

• Trade

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

• Comparative Advantage

• Specialization

• Absolute advantage

• Positive economics

the act of willingly trading one item or service for another

• Money

• The Law of Trade

• Voluntary Exchange

• Supply and Demand

Which of the following would likely discourage specialization in an area?

• a lack of good transportation

• a large city with many people

• a flat terrain with vegetation

• an extremely dense population

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

• division of labor.

• interdependence.

• absolute advantage

• Specialization