Specialization and Comparative Advantage Theory Quiz
17 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

In economics, what are the three key features of society that individuals' choices determine?

  • What gets produced, how it is produced, and who gets what is produced (correct)
  • Where it is produced, who consumes it, and why it is produced
  • When it is produced, how it is produced, and who consumes it
  • Who gets what is produced, when it is produced, and where it is produced

    • What are the primary resources that every society must allocate?

  • Technology, energy, and knowledge
  • Land, labor, and capital (correct)
  • Money, goods, and services
  • Skills, education, and experience

    • What is the primary concern in economics when discussing choice in a world of scarcity?

  • Maximizing individual profits
  • Ensuring equal distribution of resources
  • Protecting the environment through sustainable production
  • Deciding what to produce, how to produce it, and who gets what is produced (correct)

    • How does specialization in production contribute to total output in an economy?

    <p>It increases total output by focusing on individual strengths</p> Signup and view all the answers

    What is the purpose of a Production Possibility Frontier (PPF) in economics?

    <p>To show the maximum possible output combinations of two goods an economy can achieve</p> Signup and view all the answers

    Why must every society transform its scarce resources into useful goods and services?

    <p>To address the economic problem of scarcity and meet society's needs and wants</p> Signup and view all the answers

    What role do land, labor, and capital play in the allocation of resources in an economy?

    <p>They are essential resources that must be allocated to produce goods and services</p> Signup and view all the answers

    What do points inside the Production Possibility Frontier (PPF) represent?

    <p>Inefficiency due to underutilization of resources</p> Signup and view all the answers

    How does increasing efficiency impact production possibilities according to the text?

    <p>Moves production towards a point on the PPF</p> Signup and view all the answers

    What is output efficiency in an economy based on a Production Possibility Frontier (PPF)?

    <p>Operating at the 'right' point on the PPF</p> Signup and view all the answers

    In economics, when does economic growth occur according to the text?

    <p>When a society acquires new resources or learns to produce more with existing resources</p> Signup and view all the answers

    What shifts the Production Possibility Frontier (PPF) up and to the right according to the text?

    <p>Economic growth</p> Signup and view all the answers

    What is the primary cause of inefficiency in resource allocation within an economy?

    <p>Misallocation of resources</p> Signup and view all the answers

    What must an economy do to be considered efficient?

    <p>Produce what people want and operate at the 'right' point on the PPF</p> Signup and view all the answers

    What is a key factor that determines economic growth according to the text?

    <p>'Acquiring new resources or learning to produce more with existing resources'</p> Signup and view all the answers

    'Production Possibility Frontier (PPF)' represents what concept in economics?

    <p>'Trade-off between producing different goods with limited resources'</p> Signup and view all the answers

    'Command Economy' is defined as an economy where:

    <p>'A central government sets output targets, incomes, and prices'</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser