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| concentrating the activity of a unit of a production resource-especially labor-on a single task or production operation. Also applies to the specialization of nations in producing these goods and services that their resources are best suited to produce |
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| a producer has an absolute advantage relative to another producer if he or she can produce more of a good or service than the other with the same amount of resources |
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| a producer has a comparitive advantage relative to another producer if he or she can produce a good or service at a lower opportunity cost than the other |
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| the relationship between individuals and institutions in a country or between countries that arises because of specalization of production |
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| the problem of how we make sure that all the specialized activities of people will be brought together by an economic system to answer basic economic questions |
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| an economic system in which the basic questions of what, how, and for whom to produce are resolved primarily by buyers and sellers interacting in markets |
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| the exclusive right of someone to use a scarce resource or good in whatever manner they think best |
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| centrally directed (command) economy |
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| an economic system in which the basic questions of what, how, and for whom to produce are resolved primarily by governmental authority |
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| an ecenomic system in which the basic questions of what, how, and for whom to produce are resolved primarily by custom and tradition |
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| an economic system in which the basic question of what, how, and for whom to produce are resolved by a mixture of marker forces and governmental direction and/or custom and tradition |
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| a network of dealing between buyers and sellers of a resource or product (good or service); the dealings may take place at a particular location, or they may take place by communication at a distance with no face-to-face contact between buyers and sellers |
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| a motication to undertake an action or to refrain from undertaking an actionl in a market economy profits are the incentive to produce |
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| a market in which finished goods and services are exchanged |
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| an economic unit consisting of an individual or a family |
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| a market in which resources and semifinished products are exchanged |
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| a factor payment for the use of land |
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| a factor payment for labor service |
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| a factor payment for the use of financial capital |
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| the return to factors of production as a reward for productive activity |
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| an analytical diagram showing the economic relationships between the major sectors of an economic system |
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