Econ Quiz 3: Vocab and Specialization

People rely on multiple groups of people to get the resources that they want and need.

• independence

• dependence

• interdependence

• multidependence

The condition of not being able to get all the goods & services one wants. It exists because human demand for goods & services exceed the quantity of goods & services that can be produced using all the available resources.

• scarcity

• surplus

• coercion

• voluntary exchange

The geography of Midwest United States is ideal for growing crops like wheat, corn, & beans. Egypt & Saudi Arabia have large oil deposits underground, beneath the desert sands. The demand for oil in the United States exceeds our domestic supply of oil, & the demand for basic crops like wheat far exceeds what Egypt & Saudi Arabia can produce domestically. Which economic concept describes the relationship that these countries should have?

• Import

• Export

• Scarcity

• Interdependence

Do countries specialize?

• Yes
• No

The definition of TRADE is __________________.

• Importing goods
• to buy or sell goods or services
• Exporting goods

Why does the United States need to import products?

• The US does not import products
• Some are easier and cheaper to make in other countries
• The US makes all of its own products

Import means

• buying goods from another country
• selling goods to another country
• only making one kind of product

True or False: Consumers benefit the most from free international trade

• False

• True

Why do countries import and export similar products

• Selling foreign goods makes people happy

• it causes an increase in the standard of living

• Consumers benefit and it allows for greater selection

• Because there is a lack of communication

What is a benefit of Specialization?

• It allows for interdependence

• It means countries spend more money

• It allows countries to do a little bit of everything

• It allows for countries to focus their productive resources on what they are good at