• Each person consumes goods and services produced by many other people both in the United States and around the world. Interdependence and trade are desirable because they allow everyone to enjoy a greater quantity and variety of goods and services.
• There are two ways to compare; the ability of two people in producing a good. The person who can produce the gixxl with the smaller quantity of inputs is said to have an absolute adzwitage in producing the good. The person who has the smaller opportunity cost of producing the good is said
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