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Module 4: Comparative Advantage and Trade Matching: 1. trade a. each person specializes in the good they are best at 2. gains from trade b. an individual can make the most of the product 3. specialization c. providing goods and services in return for other goods 4. comparative advantage d. getting more of goods you need by trading 5. absolute advantage e. producing something if the opportunity cost is lower than someone else's Short Answer: 6. Who is Adam Smith? 7. What is the topic of The Wealth of Nations? 8. What is the goal of trading? 9. What allows people to begin specializing? 10. What does a straight line on a Production Possibilities Curve mean? Hint: The easiest way to find opportunity cost on a graph is to use opposite over adjacent, just like looking for sine, cosine, or tangent. So, if looking for the opportunity cost of guns for Country A, you would do opposite (butter) over adjacent (guns) or 100 butter/50 guns which is an opportunity cost of 2 butter given up for each gun produced. Guns Country A - - Country B 120 Butter Use the following graph to answer the questions below