Trade

Middlemen increase transaction costs.

A limited quantity of a particular product that under official controls can be produced, exported, or imported.

The ability to produce a good at a lower opportunity cost.

The next best alternative use of money, time, or resources when one choice is made rather than another.

Because of trade, people can focus on those things they do better, or relatively better than others.

An example of a transaction cost...

Trade is dependent upon...

Transacation Costs are

Leads to lower per-unit cost and enormous increases in output per worker (mass production).

Dustin can produce 25 footballs or 10 helmets. What is his opportunity cost if he produces 10 helmets?

In 1 day: Tara = 30 shoes or 3 jackets; In 1 day: Shelby = 40 shoes or 10 jackets. What should Tara specialize in?

In 1 day Dayna makes 30 shoes or 3 jackets; Gracie makes 40 shoes or 10 jackets. Who has a comparative adv. in shoes?

A tax on imports (or exports) between sovereign states (countries).

If a country chooses NOT to trade, the people of that country will become

A number telling the position or rank of something in a list; 1st, 2nd, 3rd, etc...

A commodity, article, or service sold abroad (American goods sold to other countries).

Separates production into a related group of smaller tasks w/ workers focusing on a limited part of the overall process.

Trade occurs because value is

Middlemen save time and money by reducing transaction costs.

If people specialize in what they do best, then how do they get other things they need or want?

Free trade promotes the efficient use of resources.

These people help connect producers with consumers.

Incentives Matter

Which of the following is a false statement about your teacher

Middlemen make trade easier, thus helping more people realize the benefits of trade.

When a person buys a product for $5000, what is she saying about that product?

What it takes to get a product from the producer to the consumer.

There is NO such thing as a Free Lunch!!!

When a country is able to produce more of a given product with less inputs than another country. It is the BEST.

Trade Promotes _____________________.