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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.

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

efficiency

temporary lack of one or more goods

factors of production

the line that shows different production possibilities for an economy

shortage

the basic economic condition of all goods and services

opportunity cost

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

production possibilities frontier

representation of the possible ways an economy could use resources

trade-offs

land, labor, and capital

production possibilities model

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

scarcity

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.

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

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

opportunity cost

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

barter

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

division of labor

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

property rights