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International trade
________ brings more peace and prosperity to all countries.
producer
A(n) ________ is at an absolute advantage when a smaller quantity of inputs produce a good.
Imports
________: goods produced abroad and sold domestically.
Exports
________: goods produced domestically and sold abroad.
Comparative advantage
________ allows for independence and gains when it comes to trade.
Adam Smith
________ wrote in his 1776 novel, The Wealth of Nations, analyzing the role of trade and economic independence.
opportunity cost
A trade- off between the two goods that each producer faces is measured by the ________.
Absolute advantage
________: the ability to produce a good using fewer inputs than another producer.
David Ricardo
________, a millionaire stockbroker, was inspired by Adam Smith.
production possibilities
A(n) ________ frontier showcases all the various mixes of output that an economy can produce.
Comparative advantages
________ give rise to specialization and trade.
Comparative advantage
________: the ability to produce a good at a lower opportunity cost than another producer.
Opportunity cost
________: whatever must be given up to obtain some item.
comparative advantage
When someone is able to specialize in producing goods, they 're at a(n) ________.
