VA in a Global Economy Review

Worldwide markets in which the buying and selling of goods and services by all nations takes place is a -

• global economy

• local market
• national market
• regional market

A reason states and nations trade is that they cannot

• produce all goods and services at the same time
• produce all goods and services efficiently on their own
• rely solely on local resources
• have access to unlimited resources

A reason states and nations trade is to be able to buy goods and services at a

• limited variety
• lower price
• same price
• higher price

A reason that states and nations trade is to create

• cultural exchange
• competition with foreign nations

• monopolies that will control the marketplace

• jobs and opportunities to work overseas

Virginia and the United States specialize in the production of goods and services, which promotes

• economic efficiency and growth
• increased unemployment
• reduced competition
• higher prices

Technological innovation means

• a method of increasing technology costs.
• the process of developing new or improved technologies.
• the act of destroying old technologies.
• the process of ignoring technological advancements.

A single business that controls the market for a good or service is known as a

• oligopoly
• cartel
• duopoly
• monopoly

What is the result of a single business controlling the market for a good or service?

• Oligopoly
• Duopoly
• Cartel

• Monopoly.

What is the result of competition in the marketplace?

• Increased quality, lower prices, and innovation.
• Decreased customer satisfaction
• Higher prices and less choice
• Stagnation in product development

Why does VA trade with other nations and states?

• to decrease our wealth

• to increase our wealth