1
Q
Trade
A
They provide goods and services to others and receive goods and services in return
2
Q
Gains from trade
A
People can get more of what they want through trade than they could if they tried to be self-sufficient
3
Q
Specialization
A
Each person specializes in the task that he or she is good at performing
4
Q
Comparative advantage
A
An individual has a comparative advantage in producing a good or service if the opportunity cost of producing a good or service is lower for that individual than for other people
5
Q
Absolute advantage
A
An individual has absolute advantage in producing a good or service if her or she can make more of it
