Question 1

Which of the following is not a reason people choose to depend on others for goods and services?

Accepted Answer

to allow people to produce outside their production possibilities frontiers

Question 2

The production possibilities frontier illustrate

Accepted Answer

the combinations of output that an economy can produce.

Question 3

The opportunity cost of an item is

Accepted Answer

what you give up to get that item.

Question 4

People who provide you with goods and services

Accepted Answer

do so because they get something in return.

Question 5

When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all

Accepted Answer

rely upon one another for the goods and services we consume.

Question 6

By definition, imports are

Accepted Answer

goods produced abroad and sold domestically.

Question 7

By definition, exports are

Accepted Answer

goods produced domestically and sold abroad.

Question 8

Trade between countries

Accepted Answer

allows each country to consume at a point outside its production possibilities frontier.

Question 9

A country that currently does not trade with other countries could benefit by

Accepted Answer

not restricting trade

Question 10

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

Accepted Answer

the United States should produce more pork than what it requires and export some of it to Mexico.

Economics Chapter 3 Quiz example #4827

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