Macro 1.3-Advantage and Trade Basic Skills Check

According to the law of comparative advantage, the worker with the lower ______________________________ of producing a particular output should specialize in that output.

The ______________________________ organizes the production process so that each worker specializes in a separate task.

______________________________ occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.

According to Adam Smith, although each individual pursues his or her self-interest in a market economy, the “invisible hand” of ______________________________ promotes the general welfare.

______________________________ assure resource owners that they have the use of their resources and are free to supply those resources to the highest bidder.

A system of exchange in which products are traded directly for other products is ______________________________.