CH 8 Flashcards
1
Q
absolute advantage
A
the ability of one person to do a task using fewer inputs than someone else
2
Q
comparative advantage
A
possessed by the person with the lower opportunity cost
3
Q
specialization
A
where people focus on specific tasks, spending more time doing what they’re relatively good at and less time doing other stuff
4
Q
division of labor
A
when each person specializes in one small part of the production process
