Economics Review (Scarcity, Markets, and Financial Literacy)

What is economic interdependence?

• being able to produce everything on your own

• producing goods and services based on your natural resources

• depending on others for a need

• taking a risk to create a good or service

What are imports?

• items brought into a country for sale - usually scarce items

• items sent to another country to be sold - usually surplus items

• items specialized in the country

• items that are natural resources

What are exports?

• items brought into a country to be sold - usually scarce

• items sent to another country to be sold - usually surplus

• items that are natural resources and are valuable

• items that are not valuable

Why can't a country be economically independent?

• prices of resources are too high

• cannot produce everything that is demanded

• not enough demand for what is produced

• you can be economically independent

How do countries choose who to trade with?

• they look to see who has what the need

• the look to see who needs what they have

• they look to see how valuable their surplus items are

• all answer options are correct

What happens when a country specializes in a particular industry?

• they concentrate on producing all products that they can and never get really good at any of them

• they concentrate on becoming an expert in producing that one product and trade for everything else

• they trade with others to get everything

• they do not trade with anyone and make everything themselves

If a country has large fertile farmland, a large population, and coal, what industries should the country specialize in?

• agriculture and fishing

• agriculture and manufacturing

• agriculture and mining

• agriculture and technology development

If a country is landlocked what should they NOT specialize in?

• shipping

• manufacturing

• agriculture

• mining

What does a country do with items that are in surplus?

• they trade them for items that they are scare in

• they export them

• they use what they need and sell off the extras

• all other answer options are correct

What does a country do when there is a demand for items that are scarce?

• trade for them in exchange for something that is in surplus

• find a country willing to sell the needed item

• using a valuable items that is available as trade leverage

• all other answer options are correct