Econ Ch 4 Review

When an assistant in a tailoring shop only replaces zippers and nothing else, this is known as _______________________.

• Automation

• Boring

• Repetitive

• Specialization

The reason that a division of labor increases ____________________ is that workers become expert at one task.

• demand

• profits

• productivity

• number of workers

The reason Americans specialize more today than the early pioneers did is that we have access to more _________________ than pioneers had.

• money

• markets

• education

• land

In a voluntary _________________, people give up something for something else that they want even more.

• exchange

• service

• surrender

• duty

In the U.S. Constitution there is a part known as the “Commerce Clause.” This Commerce Clause states that, “The Congress shall have Power to regulate Commerce among the several states.” This keeps states from creating trade barriers when goods are shipped and traded across ________ lines.

• international

• city

• county

• state

If Jen has a comparative advantage over Julian for weeding people’s gardens, it means that Jen’s opportunity cost for weeding is _____________ than Julian’s.

• higher quality

• better

• lower

• greater

The reason that some countries have comparative advantages over other countries for producing raw materials (like coal, or iron ore) is that these natural resources are not distributed ______________ around the world.

• fairly

• evenly

• unevenly

• in high places

The reason that much clothing manufacturing has moved from the United States to other countries is that there are now more countries with low-skilled workforces that creates a __________________ advantage for clothing assembly-line work not found in the U.S.

• comparative

• absolute

• greater

• lesser

The reason trade increases the value of an item is that the item transfers to someone else who values it _______________.

• after they fix it up

• the same

• less

• more

The term “economic interdependence” means that we depend on ____________ to produce most of the goods and services that we want.

• stores

• family

• others

• ourselves