Module_02_Specialization

Question 1

What is Opportunity Cost?

Answer 1

Forgone alternative when a choice is made

Question 2

Top Sask Export in 2023?

Answer 2

Potash and Uranium

Question 3

What is the importance of specialization?

Answer 3

Productivity growth

Question 4

What is absolute advantage?

Answer 4

Higher productivity in tasks

Question 5

What is the opportunity cost concept?

Answer 5

Lower cost resources should specialize in certain activities.

Question 6

What is the principle of comparative advantage?

Answer 6

Specialize to raise group productivity

Question 7

What determines the direction of trade?

Answer 7

Relative productivities

Question 8

Difference between Absolute and Comparative Advantage?

Answer 8

Absolute: more output, Comparative: lower opportunity cost

Question 9

Top Sask Import: Agricultural implements

Answer 9

1,516,167 (10%)

Question 10

What indicates a worker’s higher productivity?

Answer 10

Completes more in same time

Question 11

How does ‘Learning by Doing’ relate to specialization?

Answer 11

Raises productivity

Question 12

Gains from Specialization and Trade?

Answer 12

Increase overall efficiency and output

Question 13

Percentage of Wheat in Sask Exports?

Answer 13

14%

Question 14

Who identified specialization as crucial for productivity growth?

Answer 14

Adam Smith

Question 15

When does a country have an absolute advantage?

Answer 15

Uses fewer resources

Question 16

Absolute Advantage in all goods?

Answer 16

Can produce all goods more efficiently

Question 17

What is one benefit of full specialization according to the principle of comparative advantage?

Answer 17

Saves set-up time