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Specialization
________, an approach to production in which individual workers become highly skilled at a specific task.
The development of skills or knowledge in one aspect of a job or field of interest. People who specialize become expert in a particular activity.
Division of labor
________ that arises from specialization. It also underscores the great efficiency and productivity that result when workers divide the individual tasks that make up a job and become expert at those specific tasks.
The allocation of separate tasks to different people. Based on the principle of specialization.
Voluntary exchange
Trade is a ________ in which both parties give up something in order to get something else they want.
The act of willingly trading one item or service for another. Both parties expect to gain from it.
Barter
________, the direct exchange of one good or service for another.
^Without the use of money. Typical in traditional economies.
Coincidence of wants
________ -- that is, when "you have something I want and I have something you want."
Money
________ is a medium of exchange that can be traded for goods or services or used to pay debts.
Critical in a market economy.
Economic interdependence
When we specialize and trade, we depend on other people or countries to produce many of the goods and services we want.
Trade barriers
_________, which included tariffs and other measures to limit interstate trade, were designed to protect local industry and promote self-sufficiency.
Commerce Clause
________, states, "Congress shall have power... to regulate Commerce with foreign Nations, and among the several states." This empowers the national government to promote trade and economic interdependence among the states.
Absolute advantage
He is younger, stronger, and better at almost everything, including gathering turnips and digging clams. As a result, he enjoys an ________ in food production.
The condition that exists when someone can produce a good or service using fewer resources than someone else.
Comparative advantage
________ is defined as the ability to perform a task at a lower opportunity cost than someone else is able to perform that task.
Wealth
Most people define ________ as money and the things money can buy. The total value of all the things a person owns. This can be measured in other ways not just dollars and cents.
Mass production
Larger markets, in turn, allow producers to take advantage of the savings that come with _______, or large-scale manufacturing.
EX: A company that produces thousands of loaves of bread each day might be able to buy its flour at a much lower cost than could a small neighborhood bakery.
