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Macro 1.3-Advantage and Trade Basic Skills Check

Last updated 10 months ago

2 questions

1

1

Question 1

1.

Draggable item		Corresponding Item

Question 2

2.

Please match the correct term to complete the statement.

Draggable item		Corresponding Item

Please match the definition with the term.

representation of the possible ways an economy could use resources

efficiency

all the possible alternatives that are rejected when a choice is made

factors of production

land, labor, and capital

shortage

the line that shows different production possibilities for an economy

opportunity cost

the basic economic condition of all goods and services

production possibilities frontier

the most attractive alternative that is given up when an economic decision is reached

trade-offs

temporary lack of one or more goods

production possibilities model

greatest output of goods and services through the best use of resources

scarcity

According to the law of comparative advantage, the worker with the lower ______________________________ of producing a particular output should specialize in that output.

market forces or market competition

The ______________________________ organizes the production process so that each worker specializes in a separate task.

specialization

______________________________ occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.

opportunity cost

According to Adam Smith, although each individual pursues his or her self-interest in a market economy, the “invisible hand” of ______________________________ promotes the general welfare.

barter

______________________________ assure resource owners that they have the use of their resources and are free to supply those resources to the highest bidder.

division of labor

A system of exchange in which products are traded directly for other products is ______________________________.

property rights