Web Analytics
Answered

Match the correct economic term with each scenario.



absolute advantage

currency appreciation

currency depreciation

outsourcing

specialization

comparative advantage



a country contracts with another company to design its website.



one unit of a currency buys more units of another currency than it did previously.


Lisa can produce more pens than Tim with the same number of inputs.


a country or an individual concentrates all its productive efficiency on producing limited goods.

Verified Answer :

"One unit of a currency buys more units of another currency than it did previously." is "currency appreciation", since the currency is of higher value and can afford more of other currencies when exchanged. Therefore the currency is appreciated.

"a COMPANY contracts with another company to design its website." is "Outsourcing" because it seeks for solutions or help from third parties such as other companies.

"a country or an individual concentrates all its productive efficiency on producing limited goods. " is a "specialization" in the limited good.

"Lisa can produce more pens than Tim with the same number of inputs." Lisa has a "comparative advantage" to Tim because she doesn't have an absolute advantage as implied with the same number of inputs on both sides, yet she still makes more than Tim.

"currency depreciation" is not described by any scenario

Please rate with brainliest answer, I've put some effort into solving and explaining.

Answer:

"One unit of a currency buys more units of another currency than it did previously." is "currency appreciation", since the currency is of higher value and can afford more of other currencies when exchanged. Therefore the currency is appreciated.


"a COMPANY contracts with another company to design its website." is "Outsourcing" because it seeks for solutions or help from third parties such as other companies.


"a country or an individual concentrates all its productive efficiency on producing limited goods. " is a "specialization" in the limited good.


"Lisa can produce more pens than Tim with the same number of inputs." Lisa has a "comparative advantage" to Tim because she doesn't have an absolute advantage as implied with the same number of inputs on both sides, yet she still makes more than Tim.


"currency depreciation" is not described by any scenario


Please rate with brainliest answer, I've put some effort into solving and explaining.

Explanation:

Related Questions