Trade

Which is the best example of specialization?

• A surf shop lowers the price on swimsuits.

• A dryer cleaner spends extra time on grease spots.

• An assistant in a tailoring shop only replaces zippers.

• An online clothing outlet offers customized monograms.

How does division of labor increase productivity?

• Workers require minimal training.

• Workers can be paid a lower wage.

• Workers become expert at one task.

• Workers move often from job to job.

What is the main reason Americans specialize more today than the early pioneers did?

• We have access to markets.

• We have more vocational training.

• We depend less on transportation.

• We live in less crowded conditions.

In a voluntary exchange, why do people give something up?

• to increase their self sufficiency

• to get something they want more

• to allocate scarce resources fairly

• to comply with state requirements

What does it mean to say that Jen has a comparative advantage over Julian for weeding people's gardens?

• Jen weeds more quickly than Julian does.

• Jen's expertise at weeding is greater than Julian's.

• Jen can charge more of weeding than Julian can.

• Jen's opportunity cost for weeding is lower than Julian's.

Which of these is the main reason for national differences in comparative advantage in producing raw materials?

• differences in allocations of natural resources

• differences in cultural traditions

• difference in monetary systems

• differences in local business practices

Why has much clothing manufacturing moved from the United States to other countries?

• Most of the market for textile products has shifted overseas.

• American workers have a weaker work ethic today than in the past.

• Education in this country has not kept up with the needs of the 21st-century economy.

• Nations with large, low skilled workforces have a comparative advantage for assembly-line production.

How does trade increase the value of an item?

• It makes the item more expensive to buy.

• It put more different goods into competition.

• It provides work for storekeepers and truckers.

• It transfers the item to someone who values it more.

Which term best describes the fact that we depend on others to produce most of the goods and services we want?

• absolute advantage

• division of technology

• commercial productivity

• economic interdependence