WorksheetsUnit One Lesson Four Economics
Total questions: 20
Worksheet time: 10mins
the condition that exists when someone can produce a good or service using fewer resources than someone else
Specialization
Absolute advantage
Barter
Money
the direct exchange of goods or services without the use of money; a typical feature of traditional economies
Capital
Money
Barter
Economy
the condition that exists when someone can produce a good or service at a lower opportunity cost than someone else
Comparative advatange
Specialization
Absolute advantage
Division of labor
the allocation of separate tasks to different people, based on the principle of specialization
Barter
Market economy
Voluntary Exchange
Division of labor
the characteristic of a society in which people rely on others for most of the goods and services they want
Barter
Law of Marginal Utility
Economic Interdependence
Utility
a generally accepted medium of exchange that can be traded for goods and services or used to pay debts
Credit card
Money
Barter
Trade
the development of skills or knowledge in one aspect of a job or field of interest
Comparative Advantage
Specialization
Absolute advantage
Positive economics
the act of willingly trading one item or service for another
Money
The Law of Trade
Voluntary Exchange
Supply and Demand
Which of the following would likely discourage specialization in an area?
a lack of good transportation
a large city with many people
a flat terrain with vegetation
an extremely dense population
An athletic person picks fruit, and their sociable friend sells the fruit. This is an example of
division of labor.
interdependence.
absolute advantage
Specialization
Which of the following is the best example of specialization?
Workers use their skills to be self-sufficient.
An online clothing outlet offers customized monograms
focus on local trade and economies
An assistant in a tailoring shop only replaces zippers
When countries specialize and trade, they
gain financial economic independence.
become economically interdependent.
automatically become very wealthy.
are better off, but severely inefficient
How does division labor increase productivity?
Workers will require minimum training
Workers can be paid a lower wage
Workers become experts at one job
Workers move from job to job
How does division of labor increase productivity?
Workers can be paid a lower wage
Workers can become experts at one task
Workers require minimum training
Workers can easily move from job to job
When does a person have a comparative advantage?
when they can produce a good using fewer resources
when they buy a good for less than its production cost
when they have a lower opportunity cost than others
when they have a higher opportunity cost than others
Which of the following could contribute to a nation having a comparative advantage over another nation?
lots of forest
better education
a warmer climate
All answers are correct
Which of the following is true of the American economy and trade?
Most Americans experience benefits from global trade.
Global trade increases the prices of non-American goods.
Most Americans are hurt economically by global trade.
Global trade causes most Americans to lose their jobs
What is the main advantage of moving jobs from one country to another?
Foreign workers are better because the demand higher wages
Jobs are generally moved for higher wages
Jobs are generally moved for lower wages
Usually jobs are moved to an area where there are higher health care costs
How does trade increase the variety and quantity of goods available?
Trade helps nations have larger absolute advantages.
Trade provides access to goods from around the globe.
Trade reduces the risks accompanying mass production.
Trade make nations want to complete with each other
Which of these is the main reason for national differences in comparative advantage in producing raw materials?
raise the comparative advantage for a producer
Differences in allocations of natural resources
eliminate competition for the production of goods.
Differences in cultural traditions
