Title: ECON final Flashcards | Quizlet
Headings: ECON final
ECON final
Banks facilitate trade and create wealth for everyone involved by:
Terms in this set (26)

Content: When buyers and sellers make a trade, both are better off, or wealthier, as a result. This is true whether it's you buying a computer from an online retailer, or someone else trading a knife he made for an antelope another person caught. Second, markets make it possible for people to specialize, which increases productivity and drives innovation. Specialization is important because it: increases standards of living. Specialization increases productivity and drives innovation. This increases standards of living even more, creating even more wealth, encouraging more specialization, and so on. Specialization: ensures that goods and services are produced by low-cost producers. Specialization ensures that goods and services are produced by low-cost producers.