Directions: Apply the Knowledge You Have Gained from Chapter 4

question 16

Multiple Choice

Directions: Apply the knowledge you have gained from Chapter 4 to select the best answer to the following questions. ​ Choose the meaning of the word in bold using the other words in the series as context clues:
The ostrich, the penguin, and the kiwi are all known for being flightless.

• A)a type of airplane
• B)a type of fruit
• C)a type of bird
• D)none of the above

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Definitions:

Capitalism

An economic system in which productive resources are owned privately and goods and resources are allocated through market prices.

Exchange

The act of giving one thing and receiving another (especially of the same type or value) in return, often referring to the trading of goods, services, or currencies.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill within production or labor.