When both parties give up something in order to get something else they want they participate in a
What is voluntary exchange.
100
Pin workers are more productive when each worker _______________ in one step of the manufacturing process.
What is specialized
100
The U.S. has a comparative advantage in the development of advanced technologies because of
What is highly skilled, high-wage workforce.
100
Trades move goods from people who value them _______ to people who value them _________.
What is less; more
100
A generally accepted medium of exchange that can be traded for goods and services.
What is money
200
Larger markets allow producers to save with _______________________________ because things are cheaper in bulk.
What is mass production.
200
The economy produces more with the same inputs of ________, __________, and ___________ (aka ________________________________)
What is land, labor, capital. AKA the Factors of Production
200
This man developed the theory of comparative advantage in 1817.
Who is David Ricardo
200
Name 2 of the 3 ways trade makes us wealthier.
What is:
1. It puts goods in the hands of those who value them.
2. It increases the quantity and variety of goods.
3. It lowers the cost of goods.
200
You have something I want and I have something you want is called
What is coincidence of wants
300
• Economist Michael Bade defined _______________________________ as the total value of all the things a person owns.
What is wealth
300
When productivity increases, what happens to the standard of living?
It increases.
300
Less developed nations with a relatively unskilled, low-wage workforce has a comparative advantage at what?
What is the production of assembly line goods, that do not require highly skilled labor.
300
This allows us to produce more goods for our own use and for trade.
What is specialization
300
These were designed to protect local industry and promote self-sufficiency and included tariffs.
What are trade barriers.
400
When the time and labor required for you to produce something is less than it is for another producer, you have a/an
What is an absolute advantage.
400
All societies cannot specialize because of these two factors.
What is population density AND isolation from large markets.
400
What does it mean to have an absolute advantage? Think of how Jack had an absolute advantage over Selkirk.
What is to be a more efficient worker. He was younger, stronger, and did almost everything better.
400
2 ways of making the cost of goods lower
What is
1. Opening markets to less costly goods from other places and
2. Expanding markets for products
400
When we specialize and trade, we depend on other people/countries to produce many of the goods and services we want. This trade leads to
What is economic interdependence
500
When your opportunity cost is less than another producer’s opportunity cost, you have a/an
What is a comparative advantage
500
How does money facilitate trade?
It is easy to carry and convenient to use for commercial transactions.
500
This tariff placed a tax on imported grain in order to raise the price and protect English grain growers. It helped farmers and wealthy landowners but hurt factory workers since they didn't grow their own grain.
What are The Corn Laws
500
In a _________________ economy with abundant trade, the __________ and ____________ of goods are far greater, resulting in a ______________ society.
What is specialized; variety; quantity; wealthier
500
This states that Congress has the power to regulate commerce.