2.3 Comparative Advantage flash cards

Set: 2.3 Comparative Advantage

Familiarize	Learn		Test
Play Scatter		Play Space Race
Voice Scatter		Voice Race

Combine with other sets	Login to add to Favorites
Print: Term List \| Flashcards	Editing not allowed
Export	Deleting not allowed

Share these flash cards

With group: DRHS Economics	Optional message From:
HTML link to set:	Tiny link:
Share on Facebook	Share on MySpace

All 6 terms

Term	Definition
Absolute Advantage	To be able to make something using fewer resources than other producers require
Law of Comparative Advantage	The worker, firm, region, or country with the lowest opportunity cost of producing an output should specialize in that output
Specialization	Occurs when individual workers focus on single tasks, enabling, each one to be more efficient and productive
Barter	A system of exchange in which products are traded directly for other products
Money	Anything that everyone is willing to accept in exchange for goods and services
Division of Labor	An action that sorts the production process into separate tasks to be carried out by separate workers

Set Information

Terms	6
Creator	mjdolenko
Created	October 7, 2009
Group	DRHS Economics
Subject	Economics
Access	Anyone
Edit	Creator Only
Report as inappropriate

Get rid of ads on Quizlet

Description

The law of comparative advantage helps explain why even a person talented at many things can get more done by specializing. Division of labor allows allows firms to increase production by having each worker specialize.

Pop out

Discuss

mjdolenko : The law of comparative advantage says that if a country makes something cheaper than another country it should make only that item. Can you think of a country that has this advantage? How about corn? The U.S. can produce corn cheaper than any other country so according to the law of comparative advantage the U.S. should produce only corn.

mjdolenko : Have you ever noticed how fast food workers only do one thing? One is in charge of cooking the meat, another puts the condiments on, someone else wraps the food, and still someone else makes the fries, and finally one person gets the drink and puts the food on the tray. This is specialization. It is what makes fast food fast. If they didn't do this it would take twice as long to make your food. Who wants to wait that long? This specialization is accomplished by using division of labor. Makes sense doesn't it?

Report as inappropriate

Last Message: 1 month ago