Chapter 3 - Interdependence and the Gains from Trade

International trade

International trade

________ can make some individuals worse off, even as it makes the country as a whole better off.

Comparative advantage

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

Imports

________- goods produced abroad and sold domestically.

Exports

________- goods produced domestically and sold abroad.

comparative advantage

Trading allows people to specialize in activities in which they have a(n) ________.

International trade

________ can make some individuals worse off, even as it makes the country as a whole better off.

Opportunity cost

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