Economics Trade, Specialization, Markets

What is it called when people agree to exchange goods and services. In the process, they give up something to get something else.

• opportunity cost

• trade

• consequences

• None of the above

Sometimes people ______, or directly exchange one good or service for another.

What can Samantha and Diego trade to get what they want?

• Samantha can trade her tomatoes for Diego's carrots.

• Diego can trade his broccolifor Samantha's oranges.

• Diego can trade his almonds for Samantha's tomatoes.

• Samantha can trade her tomatoes for Diego's broccoli.

People still barter today. An example of this would be a boy trades his old computer for a friend's bike.

• True

• False

Another example of barter is when a woman watches a family pet in exchange for $100 a week.

• True

• False

What is it called when people make and do things they are best at, instead of making and doing everything on their own.

The Three Brother's Italian Restaurant is owned by three brothers: Tony, Pauli, and Guiseppe. Guiseppe make fantastic Cannoli, terrible pizza, and an average lasagna. Tony makes a great pizza pie, average lasagna, and average cannoli. Pauli on the other hand makes a perfect lasagna, average pizza, and terrible cannoli. In this restaurant what do you think Guiseppe specializes in?

• lasagna

• cannoli

• pizza

• veal parmesan

According to Adam Smith, how do people benefit from specialization and trade?

• People buy things they want or need for less than it would cost to make things themselves.

• People spend all their money to buy things they need.

• People make everything they need to save as much money as possible.

• People make clothes and shoes at home and listen to the master of the family.

According to the map, Brazil _____ vegetables to the ______. China _______ coal from Australia. Egypt _____ cotton to India and Brazil _____ vehicles from the European Union.

• exports, European Union, exports, imports, imports

• imports, European Union, imports, exports, imports

• exports, European Union, imports, exports, imports

• None of the above

According to this chart what does Ecuador specialize in?

• Oil production.

• Sugar production.

• Vehicle production.

• None of the above.