Modern Principles of Economics Chapter 2 Terms – Flashcards

**Goods and services are produced in better quality, quantity and speed when people focus on producing a few things instead of making everything they want by themselves.**, *A focus on a particular activity or area of study*

A measure of the goods and services produced within a particular country.

*Think of an assembly line, and its advantages are.....*Trade allows people to specialize in certain ideas, which increases the total knowledge available

The ability to produce the same good using fewer inputs than another. ** Specialization and trade, however, are based on comparative advantage.**

All the combinations of goods that a country can produce given its productivity and supply of inputs

The value of a fraction does not change if both the numerator and the denominator are divided (or multiplied) by the same nonzero number.

(economics) the utilization of economic goods to satisfy needs or in manufacturing

Exchanging goods and services between countries

a factory can produce more goods in less time and for less money

Actions or processes that involve the entire world and result in making something worldwide in scope. BEEN AROUND SINCE ROMAN EMPIRE