Macro 1.3-Advantage and Trade Basic Skills Check

Last updated 8 months ago

2 questions

Please match the definition with the term.

Draggable item		Corresponding Item
greatest output of goods and services through the best use of resources		efficiency
representation of the possible ways an economy could use resources		factors of production
the line that shows different production possibilities for an economy		shortage
the most attractive alternative that is given up when an economic decision is reached		opportunity cost
land, labor, and capital		production possibilities frontier
temporary lack of one or more goods		trade-offs
all the possible alternatives that are rejected when a choice is made		production possibilities model
the basic economic condition of all goods and services		scarcity

Please match the correct term to complete the statement.

Draggable item		Corresponding Item
______________________________ assure resource owners that they have the use of their resources and are free to supply those resources to the highest bidder.		market forces or market competition
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.		specialization
According to the law of comparative advantage, the worker with the lower ______________________________ of producing a particular output should specialize in that output.		opportunity cost
______________________________ occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive.		barter
A system of exchange in which products are traded directly for other products is ______________________________.		division of labor
The ______________________________ organizes the production process so that each worker specializes in a separate task.		property rights