FREE AND STUDY GAMES ABOUT LESSON 3-4 EXAM

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FREE AND STUDY GAMES ABOUT LESSON 3-4 EXAM

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -42 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: A society that values economic equity seeks to

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give everyone a fair share of the economic pie.

Question 2: Which statement about a mixed economy is true?

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The government pays household and firms for their labor and products.

Question 3: When people specialize and trade, they

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become economically interdependent.Question 4: According to James Gwartney, Richard Stroup, and Dwight Lee in "Common Sense Economics," what is the foundation of trade?

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Mutual Gain

Question 5: Which economic goals are emphasized in a market economy?

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economic efficiency and freedom

Question 6: The three fundamental economic questions are

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what to produce, how, and for whom?

Question 7: The development of skills in one aspect of a job is called

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specialization Question 8: An athletic person picks fruit, and their sociable friend sells the fruit. This is an example of

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division of labor.Question 9: How does trade increase the variety and quantity of goods available?

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Trade provides access to goods from around the globe.

Question 10: Which of the following is true of the American economy and trade?

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Most Americans experience benefits from global trade.

Question 11: What is one reason trade makes people wealthier?

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It lowers the cost of goods.Question 12: When Adam Smith wrote about "the invisible hand," he was referring to the power of

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markets to provide goods and services at prices people will pay.

Question 13: ________ based on comparative advantage benefits both trading partners.

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Specialization Question 14: The most significant driving force of the free enterprise system is

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the profit motive.Question 15: The ability to make our own economic decisions without interference from the government is called

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economic freedom.

Question 16: How can global trade function as a disadvantage for some people?

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It can take business away from local producers.

Question 17: When does a person have a comparative advantage?

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when they have a lower opportunity cost than others Question 18: Which of the following could contribute to a nation having a comparative advantage over another nation?

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all of the above

Question 19: The two kinds of markets in the circular flow model are

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the product market and the factor market.

Question 20: How do people and nations gain from specialization and trade?

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comparative advantage

Question 21: In a laissez-faire economy

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producers and consumers are relatively free of government intervention Question 22: Susan can score seven goals, where as Rob can score five. Susan has

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an absolute advantage.

Question 23: Economist Michael Bade defined wealth as

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the total value of everything a person owns.Question 24: Which of the following would likely discourage specialization in an area?

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a lack of good transportation

Question 25: Intellectual property law

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encourage innovation by guaranteeing that inventors and artists can profit from their creations.Question 26: Why does every society face difficult choices in deciding what to produce?

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Each society has limited resources but unlimited wants.Question 27: An economy can produce more with the same inputs of land, labor, and capital when people

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specialize in a specific task or skill.

Question 28: How do you start calculating a person's comparative advantage?

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You calculate their opportunity cost associated with an activity.