The Economy

In the West African empire of Mali, gold was a(n)

• capital resource

• natural resource

• economic resource

• human resource

Why does specialization encourage trade?

• People want goods and services they do not have.

• The price of goods and services decreases with specialization.

• Specialization encourages people to travel and spend money.

• Specialization provides different jobs in a community.

What is an opportunity cost?

• The choice between two possibilities.

• The choice that is given up when a decision is made.

• The decision-making model used to make a choice.

• A type of economic specialization.

Which two are capital resources?

• tree

• computer

• hammer

• cow

Natural resources are -

• goods made by people and used to produce other goods and services.

• people working to produce goods and services

• materials that come directly from nature

• things that people make or use to satisfy their needs and wants

A miner in ancient China digs for metal. When the metals are melted together they form bronze which is used

to make weapons, pots, and tools.

The MINER is a -

• consumer

• capital resource

• producer

• natural resource

A miner in ancient China digs for metal. When the metals are melted together they form bronze which is used

to make weapons, pots, and tools.

The NATURAL RESOURCE is -

• pots

• metals

• tools

• the miner

Virginia specializes in the production of which good & service?

• olive picking and grapes

• silk making and rice

• shipbuilding and coal

• gold mining and salt

Which two are examples of capital resources found in ancient Egypt?

• farmers

• fish

• irrigation systems

• water

• plows

Why do people make choices?

• because some choices do not have opportunity costs

• because they cannot have everything they want

• because regions often specialize in certain goods and services

• because resources are used to produce goods and services