7 MT

Question 1

efficiency

Answer 1

the quality of producing effectively with a minimum of waste

Question 2

input

Answer 2

the total amount invested in the production of a goodou

Question 3

output

Answer 3

the total amount of a good that is produced

Question 4

total cost

Answer 4

the sum cost of all the factors of production used in making goods

Question 5

average cost

Answer 5

the sum cost of all the factors of production used in producing one unit of a good

Question 6

geographical specialization

Answer 6

the production of goods in which a country or region has absolute or comparative advantage

Question 7

free trade

Answer 7

the exchange of goods free from governmental restrictions or penalties

Question 8

tariffs

Answer 8

a tax that a government applies only to imported goods

Question 9

ways efficiency can be improved

Answer 9

1. a producer may keep his input steady and increase his output
2. a producer can keep his output constant while reducing his input

Question 10

what creates wealth of nations

Answer 10

intelligent work

Question 11

The Elixer

Answer 11

expresses from a Christian perspective that there is intelligent and unintelligent work , and that God should be our motivation to work intelligently and efficiently

Question 12

entrepreneurs and managers should be able to

Answer 12

judge how much to spend on each of the five factors of production

Question 13

specialization results in

Answer 13

low average costs and high comparative efficiency

Question 14

division of labor advantages

Answer 14

1. better use of resources
2. greater variety of goods, including services
3. more inventions encouraged
4. fewer tools needed per worker

Question 15

division of labor disadvantages

Answer 15

1. technological unemployment
2. decline of small-scale industry
3. decline of skilled craftsmen
4. possible hostility between labor and management in large industries

Question 16

mass production

Answer 16

system which turns out large quantities of identical products

Question 17

the American system of mass production is based on

Answer 17

1. division of labor
2. standardized parts
3. automatic conveyance (assembly line)

Question 18

geographical specialization occurs when

Answer 18

an area realizes that it is advantageous to produce different goods and to exchange these products for those of other areas

Question 19

David Ricardo

Answer 19

Lived: 1772-1832
held a seat in the English House of Commons, from which he championed the cause of free trade among nations because he understood that unrestricted trade benefited both countries involved. He warned the dangers of protectionism (the theory that domestic manufacturers need governemntal protection against foreign competitors). Although not in his lifetime, England and many other modern nations eventually listened. His Principle of Comparative Advantage continues to be a fundamental law of economics.