Specialization arises because
A) some people don't like doing some tasks.
B) differences in the costs of production give some producers a comparative advantage in the production of particular goods or services.
C) the government directs resources into certain activities.
D) inefficient production forces producers to trade.
Ans: B) differences in the costs of production give some producers a comparative
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The utility of a good is determined by how much ________ a particular consumer obtains from it.
a. Satisfaction b. usefulness c. cost d. need fulfillment
Using Figure 1.7, we know the production of 5 units of soda and 2 units of pizza is 
A. impossible because we have the resources but do not have the technology. B. impossible because we have the technology but do not have the resources. C. possible, but there would be unemployed resources. D. possible, but only if all resources were fully employed.
One major assumption of economics is that people
A) act as if they systematically pursue self-interest. B) behave randomly without any predictable pattern. C) are sometimes rational and sometimes irrational. D) always pursue the interests of others.
Goods that are produced in other countries and then sold domestically are called
A) exports. B) imports. C) tariffs. D) quotas.