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WorksheetsCHAPTER 4 TEST
Total questions: 20
Worksheet time: 10mins
_________ involves the development of special skills (or knowledge) in ONE aspect of a job/field.
Division of Labor
Voluntary Exchange
Coincidence of Wants
Specialization
TRUE OR FALSE? Specialization ENCOURAGES trade.
TRUE
FALSE
The breakfast pictured on the left reflects which concepts from Chapter 4?
interdependence
specialization
coincidence of wants
trade barriers
A ______________ ____________________ exists when both parties give up something in order to get something else they want.
complete disaster
voluntary exchange
comparative advantage
absolute advantage
Which is TRUE of voluntary exchanges?
People agree to an exchange because they expect it to improve their well-being
The foundation of trade is mutual gain
BOTH OF THESE
NEITHER OF THESE
Barter is the direct __________ of one good or service for another.
destruction
exchange
TRUE or FALSE? A farmer and a shepherd agreeing to exchange a basket of potatoes for a bag of wool is an example of BARTERING.
TRUE
FALSE
Which is true of MONEY?
It is a medium of exchange
It can be traded for goods and services
It's generally accepted throughout society
It's easy to carry
The characteristic of a society in which people rely on others for most of the goods and services they want is called _______________ __________________________.
Economic Dependence
Economic Interdependence
Barter
Voluntary Exchange
_____________________ ADVANTAGE is the condition that exists when someone can produce a good or service using fewer resources than someone else.
COMPARATIVE
ABSOLUTE
IMMEDIATE
ECONOMIC
TRUE or FALSE? Money is critical in a market economy.
TRUE
FALSE
John makes shirts and his friend Rahul sells them. This is an example of ____________________________.
opportunity cost
absolute advantage
comparative advantage
division of labor
Florida has a comparative advantage in the orange juice business because:
Florida is a nicer place to
Floridians like orange juice more than the rest of the US
Florida has a climate that allows oranges to grow
all of these
If Canada can produce 100 pounds of beef using two ranchers, while Argentina needs three ranchers to produce 100 pounds of beef, Canada has an _____________________ advantage over Argentina in beef production.
ABSOLUTE
COMPARATIVE
Trade makes us wealthier because:
It moves goods to people who value them
It increases the quantity and variety of goods available
It lowers the cost of goods
ALL of these
TRUE or FALSE? Mass production lowers the cost of goods.
TRUE
FALSE
TRUE or FALSE? In general, most economists agree that expanding trade is good for Americans and the US economy as a whole.
TRUE
FALSE
A _______________________________________ is a situation in which each of two individuals has something the other wants.
coincidence of wants
cash transfer
absolute advantage
comparative advantage
TRUE OR FALSE? Interdependence results from specialization and trade.
TRUE
FALSE
TRUE or FALSE?
Although it's good for the economy, trade significantly increases the price of goods and services.
TRUE
FALSE
