Microeconomics Module 4

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Posted on

May 24th, 2023

question

gains from trade

answer

people can get more of what they want through trade than they could if they tried to be self-sufficient

question

specialization

answer

What causes the increase in output in gains from trade?

question

specialization

answer

each person specializes in the task that he or she is good at performing

question

trade

answer

In a market economy, individuals engage in...

question

trade

answer

to provide goods and services to others and receive goods and services in return

question

trade

answer

What is the key to a much better standard of living for everyone?

question

trade

answer

people divide tasks among themselves and each person provides a good or service that other people want in return for different goods and services that he or she wants

question

gains from trade

answer

What is the reason we have an economy, but not many self-sufficient individuals?

question

Adam Smith's 'The Wealth of Nations'

answer

What 1776 book is regarded by many as the beginning of economics as a discipline?

question

eighteenth-century pin factor

answer

What example does Adam Smith use to introduce his book?

question

• specializes in a task
• trades with others

answer

The economy as a whole can produce more when each person...

question

only one type

answer

The benefits of specialization re the reason a person typically focuses on the production of (many/one type) of good(s) or service(s).

question

Markets

answer

____________ are what allow people to specialize in their respective fields.

question

find the goods and services that they want in the market

answer

As long as individuals know that they can..., they are willing to forgo self-sufficiency and are willing to specialize.

question

gains from trade (trade based on comparative advantage)

answer

What is the production possibilities curve particularly useful for illustrating?

question

• yes
• are still better off together than left to one's own efforts

answer

Can there be gains from trade even if one of the trading parties isn't especially good at anything?

question

constant

answer

What does a straight line on the PPC imply about the opportunity cost?

question

comparative advantage

answer

An individual has a(n) ____________ in producing a good or service if the opportunity cost of producing the good or service is lower for the individual that for other people.

question

absolute advantage

answer

An individual has a(n) ____________ in producing a good or service if he or she can make more of it with a given amount of time and resources.

question

price of good each person is obtaining is less than his own opportunity cost of producing the good himself

answer

Two individuals will only be willing to trade if...

question

everyone has a comparative advantage/disadvantage in something

answer

As long as people have different opportunity costs, then...

question

comparative

answer

(Comparative/Absolute) advantage is the basis for mutual gain.

question

trade between countries

answer

What is perhaps the most important application of comparative advantage?

question

economies are much less productive

answer

For what reason as certain countries, like El Salvador, Sri Lanka, and Bangladesh, so much poorer than the United States?

question

comparative advantage

answer

Why do poor countries, despite their less productive economies, produce so much of the United States' clothing?

1 of 25

question

gains from trade

answer

people can get more of what they want through trade than they could if they tried to be self-sufficient

question

specialization

answer

What causes the increase in output in gains from trade?

question

specialization

answer

each person specializes in the task that he or she is good at performing

question

trade

answer

In a market economy, individuals engage in...

question

trade

answer

to provide goods and services to others and receive goods and services in return

question

trade

answer

What is the key to a much better standard of living for everyone?

question

trade

answer

people divide tasks among themselves and each person provides a good or service that other people want in return for different goods and services that he or she wants

question

gains from trade

answer

What is the reason we have an economy, but not many self-sufficient individuals?

question

Adam Smith's 'The Wealth of Nations'

answer

What 1776 book is regarded by many as the beginning of economics as a discipline?

question

eighteenth-century pin factor

answer

What example does Adam Smith use to introduce his book?

question

• specializes in a task
• trades with others

answer

The economy as a whole can produce more when each person...

question

only one type

answer

The benefits of specialization re the reason a person typically focuses on the production of (many/one type) of good(s) or service(s).

question

Markets

answer

____________ are what allow people to specialize in their respective fields.

question

find the goods and services that they want in the market

answer

As long as individuals know that they can..., they are willing to forgo self-sufficiency and are willing to specialize.

question

gains from trade (trade based on comparative advantage)

answer

What is the production possibilities curve particularly useful for illustrating?

question

• yes
• are still better off together than left to one's own efforts

answer

Can there be gains from trade even if one of the trading parties isn't especially good at anything?

question

constant

answer

What does a straight line on the PPC imply about the opportunity cost?

question

comparative advantage

answer

An individual has a(n) ____________ in producing a good or service if the opportunity cost of producing the good or service is lower for the individual that for other people.

question

absolute advantage

answer

An individual has a(n) ____________ in producing a good or service if he or she can make more of it with a given amount of time and resources.

question

price of good each person is obtaining is less than his own opportunity cost of producing the good himself

answer

Two individuals will only be willing to trade if...

question

everyone has a comparative advantage/disadvantage in something

answer

As long as people have different opportunity costs, then...

question

comparative

answer

(Comparative/Absolute) advantage is the basis for mutual gain.

question

trade between countries

answer

What is perhaps the most important application of comparative advantage?

question

economies are much less productive

answer

For what reason as certain countries, like El Salvador, Sri Lanka, and Bangladesh, so much poorer than the United States?

question

comparative advantage

answer

Why do poor countries, despite their less productive economies, produce so much of the United States' clothing?

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