Chapter 3 - Interdependence and the Gains from Trade

studied byStudied by 1 person
0.0(0)
get a hint
hint

International trade

1 / 13

Anonymous user
Anonymous user

Tags & Description

Studying Progress

0%
New cards
14
Still learning
0
Almost done
0
Mastered
0
14 Terms
1
New cards

International trade

________ brings more peace and prosperity to all countries.

New cards
2
New cards

Multiple people

________ can benefit from trade consecutively, as trading allows each person to specialize in doing what they do /know best.

New cards
3
New cards

producer

A(n) ________ is at an absolute advantage when a smaller quantity of inputs produce a good.

New cards
4
New cards

Imports

________: goods produced abroad and sold domestically.

New cards
5
New cards

Exports

________: goods produced domestically and sold abroad.

New cards
6
New cards

Comparative advantage

________ allows for independence and gains when it comes to trade.

New cards
7
New cards

Adam Smith

________ wrote in his 1776 novel, The Wealth of Nations, analyzing the role of trade and economic independence.

New cards
8
New cards

Absolute advantage

________: the ability to produce a good using fewer inputs than another producer.

New cards
9
New cards

Opportunity cost

________: whatever must be given up to obtain some item.

New cards
10
New cards

David Ricardo

________, a millionaire stockbroker, was inspired by Adam Smith.

New cards
11
New cards

Comparative advantages

________ give rise to specialization and trade.

New cards
12
New cards

Comparative advantage

________: the ability to produce a good at a lower opportunity cost than another producer.

New cards
13
New cards

opportunity cost

A trade- off between the two goods that each producer faces is measured by the ________.

New cards
14
New cards

comparative advantage

When someone is able to specialize in producing goods, they 're at a(n) ________.

New cards

Explore top notes

note Note
studied byStudied by 12 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 4 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 27 people
Updated ... ago
5.0 Stars(2)
note Note
studied byStudied by 3 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 2 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 29670 people
Updated ... ago
4.9 Stars(501)

Explore top flashcards

flashcards Flashcard90 terms
studied byStudied by 79 people
Updated ... ago
4.5 Stars(2)
flashcards Flashcard34 terms
studied byStudied by 8 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard30 terms
studied byStudied by 12 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard38 terms
studied byStudied by 9 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard95 terms
studied byStudied by 2 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard47 terms
studied byStudied by 5 people
Updated ... ago
5.0 Stars(1)