Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
specialization will lead to increased...
|
production
|
|
|
economies need to decide
|
who should specialize in doing what
|
|
|
angela can both paint and prepare taxes better than harry. does she have an advantage?
|
she has an absolute advantage in painting and preparing taxes, however harry has the comparative advantage b/c his opp cost is lower
|
|
|
when two ppl have comp adv in producing diff things, both can gain by...
|
specializaing in what they do to the best
|
|
|
gains from specialization and trade come from...
|
comparative and not absolute advantage
|
|
|
the basis for international trade among countries is...
|
comparative advantage
|
|
|
china has a very large, unskilled workforce, therefore they have a bigger/smaller comparative adv compared to the US
|
bigger
|
|
|
how can the total output available from our given resources be maximized?
|
by having individuals, regions within a country, and nations specialize in the production of those things in which they have a comparative adv
|
|
|
what does specialization result in?
|
interdependence
|
|
|
as the degree of interdependence and specialization increases, what results?
|
a more complex coordination problem
|
