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: 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. When goods and services are produced at the lowest cost possible, the quantity of output is maximized. When people do not own the resources they use, they tend to: underinvest in them. When you own something, you start considering the costs and benefits of how you use it. You have an incentive to use it in its highest valued purpose, and to protect and improve it.