- Trading for a good is a good idea:
- When it takes less resources than it does to produce it
- Only when it takes no resources from your country to do so.
- When it takes more resources than it does to produce it
- Only when you canít make it your self
- The total amount of goods a nation can produce is only limited by:
- the amount of goods its citizens want
- its government
- the amount of money its citizens have
- the amount of resources it citizens have
- It makes sense for the citizens of a nation to trade for a good than to produce the good if the opportunity cost of producing it is:
- higher than the cost or trading
- lower than the cost of trading
- When individuals, groups or nations can specialize in what they can make at the least cost and then trade with others, both production and consumption should increase. Give examples that support this thinking. Be specific and detailed and when possible, cite examples of trade discussed in class.