Econ--Markets Level 1 Quiz

Mutual reliance or dependence

Process of creating goods or services

The act of using goods or services

Efficiency in using resources to produce

Focusing on a specific task or skill

Things that encourage people to act in a certain way

Limited resources compared to unlimited wants

Goods or services brought into a country from abroad for sale

Sending goods or services to another country

Integration of economies and cultures

Trade without restrictions or barriers

Interaction of buyers and sellers in the market

Supply and demand in balance

Excess Supply

The ability of a country to produce a good at a lower opportunity cost than another country

The value of the next best alternative that is given up when making a decision

Goods for sale in other countries

Government tax on imports or exports

Distribution of resources according to a plan or set of priorities

Limit on the quantity of a good that can be imported or exported

Exclusive control of a commodity or service in a particular market

Increased competition

Diversification of products

Economies of scale

Lower labor costs

It leads to inefficient resource allocation and decreased productivity.

It has no impact on resource allocation and productivity.

It leads to efficient resource allocation and increased productivity.

It leads to resource hoarding and reduced productivity.

By encouraging countries to trade based on their strengths

By limiting the variety of goods available for trade

By increasing trade barriers between countries

By reducing the overall volume of trade