Which is TRUE about specialization and exchange between two individuals?
They generally benefit the poorer individual as well as the richer individual
.
When the government chooses to use resources to build tourist centers the selected resources are no longer available to build highways?
When the government chooses to use resources to build tourist centers, the selected resources are no longer available to build highways. This BEST illustrates the concept of:
opportunity cost
.
What is the best example of specialization?
When an economy can specialize in production, it benefits from international trade. If, for example, a country can produce
bananas
at a lower cost than oranges, it can choose to specialize and dedicate all its resources to the production of bananas, using some of them to trade for oranges.
What is the extra cost associated with undertaking some action?
The extra cost associated with undertaking an activity is called: …
marginal cost
.
Does specialization and trade raise wages?
Specialization and trade raise
productivity but not wages
.
When the government chooses to use resources to build a dam?
When the government chooses to use resources to build a dam, these
sources are no longer available to build a highway
. This choice illustrates the concept of: a. a market mechanism.
What is economics best defined as?
Economics can be defined in a few different ways. It’s
the study of scarcity
, the study of how people use resources and respond to incentives, or the study of decision-making. It often involves topics like wealth and finance, but it’s not all about money.
What are the types of specialization?
- Labor specialization. Labor specialization is now commonplace in the workplace and is an important part of production. …
- Departmental specialization. …
- Business specialization. …
- Regional specialization. …
- Country specialization.
Which is the best example of a transfer payment?
These payments are considered to be non-exhaustive because they do not directly absorb resources or create output. Examples of transfer payments include
welfare, financial aid, social security, and government subsidies for certain businesses
.
What are two advantages to specialization?
Benefits of specialization include
greater economic efficiency, consumer benefits, and opportunities for growth for competitive sectors
. The disadvantages of specialization include threats to uncompetitive sectors, the risk of over-specialization, and strategic vulnerability.
Which of the following about scarcity is true?
The correct choice is a.
Scarcity is
a situation where the available resources are limited (not enough) to meet the unlimited needs of people
. These…
Which of the following is an example of the law of one price in action?
Which of the following is an example of the law of one price in action?
Wages in India are lower than wages in the United States, and so firms move their call centers to India
. This tends to raise wages in India and depress wages in the United States.
What is an example of a marginal benefit?
A marginal benefit usually declines as a consumer decides to consume more of a single good. For example, imagine that
a consumer decides she needs a new piece of jewelry for her right hand, and she heads to the mall to purchase a ring
. She spends $100 for the perfect ring, and then she spots another.
How does specialization make us more efficient?
How does specialization make an economy more efficient? It makes it more efficient to learn one task or a few tasks very well than to learn them all. By
specializing in one craft we are able to create more products and create economic growth
2.
What are the disadvantages of specialization?
- Greater cost of training workers.
- Quality may suffer if workers become bored by the lack of variety in their job.
- More expensive workers.
- Boredom for the worker as they do the same job everyday.
- Workers’ skills may suffer as they are only doing one job.
- Workers may eventually be replaced by machinery.
How does the process of specialization change an economy?
Specialization
can increase the productivity of and provide a comparative advantage for a firm or economy
. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production.
