Economics Connecting 7th Grade

Land, Labor, Capital and Entrepreneurship are

• The basis of employment

• the result of production

• factors of production

• results of supply and demand

Which characteristic is primarily associated with a command economy.

• competition among suppliers in the market

• free access to the marketplace for producers

• centralized decision making (government) about what to produce

• competition in the marketplace to provide consumer choice.

1. What is ‘specialization’?

• Producing all goods that the country needs so that trade with other countries isn’t necessary

• Trying to avoid investing in capital goods because it’s too expensive

• Producing goods a country can make most easily so that they can trade for goods that they can’t produce locally

• Directly trading goods with another country without having to use money

Why is specialization so valuable to international trade today?

• Most countries only make one product really well.

• Specialization allows people to do a more efficient job at producing what they make best and trade for the things they need.

• It keeps the prices low on imported goods

• It limits the amount of agriculture a country allows.

Which question BEST completes this list?

• Where to produce?

• How to produce it?

• When to produce?

• Why to produce?

The relationship between the literacy rate and standard of living in Southwest Asia is

• Literacy rate has no effect on the standard of living.

• The higher the literacy rate, the higher the standard of living.

• The standard of living is independent of literacy rate.

• Low literacy rate creates a higher standard of living.

If a jeweler from the United States wanted to engage in trade with a jeweler from Israel, what would the transaction require?

• a map

• a railroad line

• a way to exchange currencies

• a reliable internet connection

International trade requires a fair way to swap currency. ______________ is the trading of one country’s currency to the currency of another country.

• Bartering

• Exchange Rate

• Currency Exchange

• Importing Goods

A person who takes risks by starting a new business is known as a(n):

• International trader

• Economist

• Entrepreneur

• Dictator

What is the definition of Gross Domestic Product (GDP)?

• The total value of all the goods and services a country produces in a year

• The total value of all goods imported within a year

• The total value of taxes collected in a year

• The total value of all goods produced by entrepreneurs in a year