Gains From Trade

Question 1

Development of skills or knowledge in one aspect of a job or field of interest

Answer 1

Specialization

Question 2

The allocation of Separate tasks to different people

Answer 2

Division of labor

Question 3

The act of willingly trading one item or service for another

Answer 3

Voluntary exchange

Question 4

The direct exchange of goods or services without the use of Money

Answer 4

Barter

Question 5

A generally accepted medium of exchange that can be traded for goods and services are used to pay debts

Answer 5

Money

Question 6

The characteristic of a society in which people rely on others for most of the goods and services they want

Answer 6

Economic interdependence

Question 7

The condition that exists when someone can produce a good or service using fewer resources than someone else

Answer 7

Absolute advantage

Question 8

The condition that exists when someone can produce a good or service at a lower opportunity cost than someone else

Answer 8

Comparative advantage