QC 7 Econ

The diagram shows the production possibilities curve for Country Y. Which of the following statements is true?

• If Country Y is producing at point C, it is using all its resources efficiently
• The opportunity cost of producing more machines is constant
• Country Y cannot produce at point E
• The most efficient point of production is point D

Labor, human capital, entrepreneurship, natural resources, and capital are all examples of which of the following?

• Outputs
• Substitutes in Production
• Absolute Advantage
• Factors of Production

If nations specialize according to their comparative advantage and engage in trade with each other, each nation can:

• Consume outside its production possibilities curve 
• Produce outside its production possibilities curve 
• Shift its production possibilities curve to the right 
• Produce more of all goods 

A benefit, profit, or value of something that must be given up to acquire or achieve something else.

• Opportunity Cost
• Comparative Advantage
• Specialization
• Production

The nation's ability to produce general goods more efficiently than another entity is referred to as?

• Specialization
• Comparative Advantage
• Opportunity Cost
• Absolute Advantage

To figure out a nation's comparative advantage, you compare their _________ to other entities?

• Absolute Advantage
• Opportunity Cost
• Resource
• Revenue

Which statement best explains why nations must trade?

• All nations belong to free trade agreements.

• All nations seek out new production methods.

• No nation has all necessary resources.

• No nation can employ all of its laborers.

Opportunity Cost is often measured in?

• Absolute Advantage
• Production Time
• Cost
• Resources

International trade refers to the exchange of goods and services within the same country

• True

• False

A focus on developing only certain skills or producing only certain goods/services

• Imports
• Exports
• Specialization
• Globalization