Quiz: Test Your Knowledge on Goods, Services, and Global Trade

📚 Quick Study Guide

• 🏭 Goods: Tangible items that satisfy needs or wants (e.g., cars, food, electronics).
• 🛠️ Services: Intangible activities performed for others (e.g., healthcare, education, haircuts).
• ⚖️ Opportunity Cost: The value of the next best alternative forgone when making a decision.
• 🌍 Absolute Advantage: The ability to produce more of a good or service than another producer using the same amount of resources.
• comparative Advantage: The ability to produce a good or service at a lower opportunity cost than another producer.
• 🤝 Specialization: When individuals or countries focus on producing a limited range of goods or services in which they have a comparative advantage.
• 📦 Exports: Goods and services sold to other countries.
• 📥 Imports: Goods and services purchased from other countries.
• 🌐 Balance of Trade:** The difference between a country's exports and imports. Trade surplus = Exports > Imports. Trade deficit = Imports > Exports.

📝 Practice Quiz

1. Which of the following is an example of a service?
   1. A) A new car
   2. B) A haircut
   3. C) A smartphone
   4. D) A loaf of bread
2. What is the term for tangible items that satisfy needs or wants?
   1. A) Services
   2. B) Goods
   3. C) Resources
   4. D) Capital
3. What does 'opportunity cost' refer to?
   1. A) The total cost of production
   2. B) The value of the next best alternative forgone
   3. C) The price of a good or service
   4. D) The profit earned from a sale
4. Which of the following describes absolute advantage?
   1. A) Producing at a lower opportunity cost
   2. B) Producing more using the same resources
   3. C) Having more capital resources
   4. D) Having more labor resources
5. What is comparative advantage based on?
   1. A) Total production volume
   2. B) Lower opportunity cost
   3. C) Higher selling price
   4. D) Greater availability of resources
6. What are goods and services sold to other countries called?
   1. A) Imports
   2. B) Exports
   3. C) Tariffs
   4. D) Quotas
7. What is a trade surplus?
   1. A) Imports are greater than exports
   2. B) Exports are greater than imports
   3. C) Imports equal exports
   4. D) There is no trade occurring