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17-1 vocabulary jw

QuestionAnswer
A situation that occurs when individuals or businesses produce a narrow range of products. Specialization
A situation in which producers in one nation depend on others to provide goods and services they do not produce. Economic Interdependence
The ability of one trading nation to make a product more efficently than another trading nation. Absolute advantage
A trading nation's ability to produce something at a lower opportunity cost than that of another trading nation. Comparative advantage
States that countries gain when they produce items they are most efficent at producing and are at the lowest opportunity cost. Law of comparative advantage
Goods and services produced in one country and sold to other countries. Exports
Goods and services produce in one country and purchased by another Imports
Created by: joannw15
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