apex economics it's a small world

Which of these is required for specialization to take place?

A division of labor

Match each of the terms below with its definition.

Absolute advantage: The ability to produce more cheaply; Comparative advantage: The existence of lower opportunity costs than competitors; Opportunity cost: The best alternative given up by a particular production decision; Protectionism: The existence of barriers to free-flowing trade.

Match each of the terms below with its definition.

Absolute advantage: The ability to produce more cheaply; Comparative advantage: The existence of lower opportunity costs than competitors; Specialization: The performance of a particular productive task within an economic system; Interdependence: The tight connection between different countries' economies.

Match each of the terms below with its definition

Absolute advantage: The ability to produce more cheaply; Comparative advantage: The existence of lower opportunity costs than competitors; Specialization: The performance of a particular productive task within an economic system; Protectionism: The existence of barriers to free-flowing trade.

What is one of the benefits of the current pattern of global trade?

Consumers pay lower prices for goods and services.

What is one of the drawbacks to globalization?

Countries and businesses must reduce wages paid to workers in order to attract foreign investment.

When tasks in an economy are specialized, which of the following exists?

Division of labor

During the period of colonization, developed countries did what?

Extracted resources from their colonies

Which of the following was not an economic effect of colonization?

Global economic development

The increasing interconnectedness of peoples and countries around the world is known as what?

Globalization

What is one of the benefits of increasing economic interdependence?

Greater economic growth

What effect does increasing economic interdependence have on the countries of the world?

Growing international trade and rising standards of living

Which of the following does not promote increased international trade and economic growth?

High tariffs

Which of the following does not promote greater international trade?

Higher tax and tariff levels

Match each current trend with one of its effects on international trade.

Improved communication: Broadening of international trade; Trade liberalization: Reduction of barriers to international trade; Infrastructure development: Facilitation of smoother international trade; Industrialization: Spread of international trade to developing countries

Match each current trend with the advantage it provides for the global economy.

Improved communication: Facilitates international business and trade. Reduction of trade barriers: Allows for a greater mobility of goods and labor. Development of infrastructure: Reduces production and transportation costs. Industrialization: Enables economic growth in developing countries

Match each current trend in the global economy with one of its economic efffects

Increased communication: Outsourcing in the high-tech industry; Trade liberalization: Greater mobility of goods and labor; Infrastructure development: Improved production and transportation; Industrialization: Economic growth in developing countries.

Globalization creates greater what?

Interconnections among the people and economies of the world

Increasing specialization within the global economy depends on what?

International trade

What is one negative effect of current patterns in global trade?

Job loss and wage decreases in developed countries

What is one of the downsides of increasing economic interdependence?

Loss of control over the national economy

Specialization in the global economy is restricted by what?

Protective tariffs

The division of labor among workers or countries enables what?

Specialization

What was the relationship between colonizing countries and their colonies?

The colonizers used the resources of their colonies to grow their own economies.

The process of globalization involves an increase in what?

The mobility of goods, services, labor, and capital

Which of these is an important factor promoting increased international trade?

The reduction of trade barriers

What limits specialization in the global economy?

Trade barriers

When might a country specialize in producing a particular good?

When it has an absolute advantage in production of that good

When does one country have an absolute advantage over another country?

When its production costs are lower

When does one country have a comparative advantage over another country?

When the opportunity cost of its production is lower