Chapter 2 Vocabulary

Choose the correct definition of economic activity.

• the changes on the earth's surface and its natural resources

• the location of people and how it affects what they do

• the use of resources to buy, sell, produce, or consume goods and services

• the long-term trends in the control of the assets of a nation

Choose the correct definition of opportunity cost.

• the value of what you have to give up in order to choose something else

• to trade goods and services without using money

• a process in which something is chosen at random

• a saying that means that the first things to arrive or appear will be the first things to be taken care of

Choose the correct definition of consequence.

• something that is a new idea or process

• something that is against the law

• something that happens as a result of an action, event, or circumstance

• something that happens before an action, event, or circumstance

when people depend on each other for goods and services they need

• interdependence

• civic life

• social life

• specialization

a resource used to produce a good or service

• factor of consumption

• productive resource

• risk

• profit

the lack of resources to produce all the goods and services that are needed or wanted

• unlimited

• scarcity

• trade-off

• consume

the measure of a nation's quality of life based on income, education, life expectancy, and other factors

• benefit

• opportunity cost

• specialization

• standard of living

Choose the correct definition of specialization.

• focusing on efficiently producing a limited number of goods and services

• focusing on efficiently producing all the needed goods and services

• focusing on efficiently using a limited number of goods and services

• focusing on efficiently using all of the needed goods and services

the buying and selling of goods and services

• title

• production

• import

• trade

Choose the correct word or phrase to complete the dictionary entry.

Vocabulary Term: voluntary exchange

Definition: to trade willingly in a way that benefits (a)  

• both sides
• only your side
• only the other side
• neither side