The power of specialization quiz

What is specialization?

• When individuals or businesses produce goods and services for their own consumption

• When individuals or businesses produce goods and services for export

• When individuals or businesses produce a narrow range of products

• When individuals or businesses produce a wide range of products

Tags

(A) 3

(A) 3.C

(A) 4.C

economy

(A)

What is economic interdependence?

• A situation in which producers in one nation depend on others to provide goods and services they do not produce

• A situation in which producers in one nation rely on imports for all their goods and services

• A situation in which producers in one nation produce all the goods and services they need

• A situation in which producers in one nation rely on their own resources to produce goods and services

Tags

(A)

(A) 3.C

What is absolute advantage?

• The ability of one trading nation to make a product more efficiently than another trading nation

• The ability of one trading nation to produce all goods and services it needs

• The ability of one trading nation to import goods and services at a lower cost than other nations

• A trading nation's ability to produce something at a lower opportunity cost than that of another trading nation

Tags

(A) 3.A

What is comparative advantage?

• The ability of one trading nation to make a product more efficiently than another trading nation

• A trading nation's ability to produce something at a lower opportunity cost than that of another trading nation

• The ability of one trading nation to produce all goods and services it needs

• The ability of one trading nation to import goods and services at a lower cost than other nations

Tags

(A) 3.A

What is the law of comparative advantage?

• Countries gain when they produce items they are least efficient at producing regardless of the opportunity cost

• Countries gain when they produce items they are most efficient at producing and that have the lowest opportunity cost

• Countries gain when they produce items they are least efficient at producing and that have the highest opportunity cost

• Countries gain when they produce items they are most efficient at producing regardless of the opportunity cost

Tags

(A) 3.A

What are exports?

• Goods and services produced in one country and not traded with any other country

• Goods and services produced in one country and consumed domestically

• Goods and services produced in one country and purchased by another country

• Goods and services produced in one country and sold to other countries

Tags

(A) 3.C

What are imports?

• Goods and services produced in one country and consumed domestically

• Goods and services produced in one country and sold to other countries

• Goods and services produced in one country and not traded with any other country

• Goods and services produced in one country and purchased by another country

Tags

(A) 3.C

(A) 4.C

What is the impact of exports on prices and quantity?

• Exports decrease prices and decrease quantity

• Exports increase prices and decrease quantity

• Exports decrease prices and increase quantity

• Exports increase prices and increase quantity

What is the impact of imports on prices and quantity?

• Imports increase prices and increase quantity

• Imports decrease prices and increase quantity

• Imports increase prices and decrease quantity

• Imports decrease prices and decrease quantity

Tags

(A) 3

How does international trade affect employment?

• International trade leads to a redistribution of employment

• International trade leads to an increase in employment

• International trade has no impact on employment

• International trade leads to a decrease in employment

Tags

(A) 3.A