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Microeconomics - Chapter 3

Teacher: Bobby Hall
Horizontales
_____ specify the terms of exchange
When people specialize and exchange goods and services in markets (two words)
______ advantage: ability to produce a good at a lower resource cost than another person
Less time switching tools or locations (Smith)
Production increases as a worker becomes more proficient (Smith)
Verticales
Concentrate on product with lower opportunity cost
_____ reduces risk to entrepreneurs
_____ increase profitability of inventions
Insight that leads to better production methods (Smith)
_______ advantage: abillity to produce a good at a lower opportunity cost than another person