1) Under certain circumstances, however, it pays for a nation to import goods and services from abroad even though they could be produced more cheaply at home. This is referred to as ___________.
2) When one nation can produce a good or service at a lower cost than another, the former is said to have an ________ in that item.
3) ________ are the goods and services that a nation sells to other nations.
4) The main reason a country import goods and services from other nations is because _________
they cannot produce those goods or services in their own nation.
they can produce the same goods and services that they import.
they are helping the other country get rid of goods and services that they no longer want to keep.
it will help them learn how to produce the goods and services in their own country.
5) The state of Florida is known to produce oranges more than majority of the other states, so Florida has a(n) __________ in oranges.
no opportunity cost
6) Specialization mostly has a negative effect on trade throughout the world.
If you wanted to compare two nations maximum combination of production of goods and services, you can use _________.
production possibilities frontier
_________ is tax on an imported product designed to protect less-efficient domestic producers.
9) Cost of the next best alternative use of money, time, or resources when making a choice is opportunity cost.
10) What major effect does specialization have on the world of trade?
It is only beneficial for the United States.
It has zero affect on trade.
It increases the worldâ€™s output.
It decreases the worldâ€™s output.