Term
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Definition
| People provide goods and services to others and receive goods and services in return. |
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Term
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Definition
| People can get more of what they want through trade than they could if they tried to be self-sufficient. |
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Term
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Definition
| Each person specializes in the task that he or she is good at performing, |
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Term
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Definition
| The opportunity cost of producing the good or service is lower for that individual than for other people. |
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Term
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Definition
| He or she can make more of a good or service with a given amount of time and resources. Having an absolute advantage is not the same thing as having a comparative advantage. |
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