Quizizz--Economics (Module 2--Element 1.4)--Trade

What are the three main elements of trade that lead to efficient allocation of resources?

• Buyer and seller gain, specialization, open markets

• High taxes, limited resources, closed markets

• Government control, limited production, high costs

• Buyer loss, specialization, closed markets

What is the foundation of trade according to the text?

• Mutual gain

• Government regulation

• High transaction costs

• Limited production

How does trade increase the value of goods according to the text?

• By increasing the quantity of goods

• By moving goods to people who value them more

• By reducing production costs

• By limiting market access

Why might a highly technical book on electronics be valued differently by different people?

• Because of its age

• Due to varying preferences, knowledge, and goals

• Because of its size

• Due to its color

What is the main benefit of voluntary exchange according to the text?

• Increases the wealth of both people and their nation.

• Decreases the cost of goods and services.

• Reduces the need for specialization.

• Limits the production of goods.

What does trade allow individuals to do more effectively?

• Produce goods at a higher cost.

• Specialize in what they do best relative to cost.

• Reduce the total quantity of goods produced.

• Avoid purchasing items from others.

What principle do economists refer to when discussing trade and specialization?

• Law of diminishing returns.

• Law of supply and demand.

• Law of comparative advantage.

• Law of absolute advantage.

According to the law of comparative advantage, what should individuals focus on producing?

• What they produce at the highest cost.

• What they produce best and trade for the rest.

• What others produce best.

• What is most expensive to produce.

What is the opportunity cost for doctors who keep their own records?

• Increased patient satisfaction

• Time that could have been spent seeing patients

• Lower administrative costs

• Improved record accuracy

Why do doctors often hire someone else to manage their records?

• To increase their workload

• To reduce patient interaction

• To lower the opportunity cost of record keeping

• To improve their record-keeping skills