Econ--Markets Level 1 Quiz

Match the Term and Definition or Example

• Mutual reliance or dependence

• Interdependence

• Efficiency in using resources to produce

• Consumption

• The act of using goods or services

• Production

• Process of creating goods or services

• Productivity

Match the following terms to their definitions/examples

• Focusing on a specific task or skill

• Import

• Goods or services brought into a country from abroad for sale

• Scarcity

• Things that encourage people to act in a certain way

• Incentives

• Limited resources compared to unlimited wants

• Specialization

Match the following terms to their definitions/examples

• Sending goods or services to another country

• Export

• Interaction of buyers and sellers in the market

• Globalization

• Trade without restrictions or barriers

• Prices

• Integration of economies and cultures

• Free Trade

Match the following terms to their definitions/examples

• Goods for sale in other countries

• Export

• Excess Supply

• Opportunity Cost

• The ability of a country to produce a good at a lower opportunity cost than another country

• Market Equilibrium

• The value of the next best alternative that is given up when making a decision

• Compaative Advantage

• Supply and demand in balance

• Surplus

Match the following term to its definition or example

• Limit on the quantity of a good that can be imported or exported

• Monopoly

• Exclusive control of a commodity or service in a particular market

• Tarriff

• Government tax on imports or exports

• Resource Allocation

• Distribution of resources according to a plan or set of priorities

• Quota

What are some advantages of specialization in international trade?

• Increased competition

• Diversification of products

• Economies of scale

• Lower labor costs

Specialization fosters cooperation and mutual benefit among nations, contributing to economic stability and prosperity. True or False?

(a)  

How does specialization in international trade impact resource allocation and productivity?

• It leads to inefficient resource allocation and decreased productivity.

• It has no impact on resource allocation and productivity.

• It leads to efficient resource allocation and increased productivity.

• It leads to resource hoarding and reduced productivity.

How does specialization contribute to a more diverse and interconnected global economy?

How does specialization promote efficiency in international trade?

• By encouraging countries to trade based on their strengths

• By limiting the variety of goods available for trade

• By increasing trade barriers between countries

• By reducing the overall volume of trade