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Macro 1.3-Advantage and Trade Basic Skills Check

Last updated 9 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.

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

efficiency

the basic economic condition of all goods and services

factors of production

representation of the possible ways an economy could use resources

shortage

temporary lack of one or more goods

opportunity cost

the line that shows different production possibilities for an economy

production possibilities frontier

land, labor, and capital

trade-offs

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

production possibilities model

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

scarcity

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

market forces or market competition

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

specialization

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.

opportunity cost

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

barter

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

division of labor

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

property rights