Econ--Markets Level 1 Quiz

Match the Term and Definition or Example

• The act of using goods or services

• Consumption

• Efficiency in using resources to produce

• Productivity

• Process of creating goods or services

• Interdependence

• Mutual reliance or dependence

• Production

Match the following terms to their definitions/examples

• Limited resources compared to unlimited wants

• Specialization

• Focusing on a specific task or skill

• Import

• Goods or services brought into a country from abroad for sale

• Incentives

• Things that encourage people to act in a certain way

• Scarcity

Match the following terms to their definitions/examples

• Interaction of buyers and sellers in the market

• Prices

• Trade without restrictions or barriers

• Globalization

• Integration of economies and cultures

• Export

• Sending goods or services to another country

• Free Trade

Match the following terms to their definitions/examples

• Supply and demand in balance

• Compaative Advantage

• Excess Supply

• Export

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

• Opportunity Cost

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

• Surplus

• Goods for sale in other countries

• Market Equilibrium

Match the following term to its definition or example

• Distribution of resources according to a plan or set of priorities

• Resource Allocation

• Government tax on imports or exports

• Tarriff

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

• Monopoly

• Exclusive control of a commodity or service in a particular market

• Quota

What are some advantages of specialization in international trade?

• Increased competition

• Diversification of products

• Economies of scale

• Lower labor costs

Specialization fosters cooperation and mutual benefit among nations, contributing to economic stability and prosperity. True or False?

How does specialization in international trade impact resource allocation and productivity?

• 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.

How does specialization contribute to a more diverse and interconnected global economy?

How does specialization promote efficiency in international trade?

• 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