Topic 1 LESSONS 6 AND 7

Exchange of goods and services

A country with a less productive economy is a developed economy. T/F

Which of the following is NOT a factor economists consider when studying development?

What is revenue?

Ability and willingness to produce a good or service

What is marginal cost?

A ____ economy combines elements of traditional, market, and command economic systems.

Desire for certain goods and services

People/businesses that make and sell goods or services

Which of the following is NOT a basic economic question?

Economic growth or an increase in living standards

People/businesses that buy, or consume, goods or services

The economy of society works best when the society _____ in producing the goods which it has a comparative advantage.

The four types of economic systems include: traditional, command, central, and mixed. T/F

Countries enact trade barriers to try to protect domestic products from competition from lower-priced import. T/F

Economists measure a country economy by cost benefits analysis. T/F

What a country is good at producing

Specialization is the act of concentrating on a limited number of goods or services. T/F

Why do most countries promote trade?

Total value of all goods and services produced in a country.

The study of how people meet their wants and needs

A _____ economy is an economy in which the central government makes all economic decisions.

A country with a strong economy and high standard of living is a developing country. T/F

Cost of what you have to give up

Consumers benefit from free trade by having more choices. T/F

A government policy or restrictions that limits international trade.

A ____ economy is an economy in which individual consumers and producers make economic decisions.

A ____ economy is an economy in which people make economic decisions based on customs and values.

What is profit?

Removal of trade barriers

Amount of goods and services produced given the amount of resources used.