Question

For any economy, the "scarcity" problem simply means that the available free resources are "not enough" to produce all goods and services required to satisfy the unlimited human wants.

Question 1 options:

	True
	False

Question 2

Division of labor in some cases is used to explain why countries gain when specializing in producing fewer goods and services.

Question 2 options:

	True
	False

Question 3

Why economies may gain when specializing in producing fewer goods and services?

Question 3 options:

	Because producing fewer products with higher scales allows for an advanced level of "division of labor".
	Because producing at a higher scale in fewer products always implies higher profits for the producers and greater consumption level for the buyers.
	Because producing at a higher scale in fewer products always allow consumers to get the products at lower prices.
	All of the above can be used to explain the gains from specialization in production.

Question 4

Because the number of available goods and services is uncountable, countries may never gain less if they specialize endlessly in producing fewer goods and services.

Question 4 options:

	True
	False

Answer 1

a) True

Scarcity occurs in the market because the human wants are unlimited and the demand in the market are limited.

b) True

A nation will be able to specialize only when the labor specialize in the market and produce more using less resources.

c) "D"

all the given options are correct. specialization reduce the price of the goods and increase the efficiency in the market.

d) False

A nation will only specialize in the goods where they have a comparative advantage in the market.