Question

drag each label to the correct location. not all labels will be used.
match the correct economic term with each scenario.
absolute advantage currency appreciation currency depreciation outsourcing
specialization comparative advantage
a country or an individual concentrates all its
productive efficiency on producing limited
goods.
lisa can produce more pens than tim with
the same number of inputs.
one unit of a currency buys more units of
another currency than it did previously.
a company contracts with another company
to design its website.

Explanation:

• Specialization: When a country or individual focuses on producing limited goods, it's specialization.
• Absolute Advantage: Lisa producing more pens with same inputs as Tim shows absolute advantage.
• Currency Appreciation: One unit of currency buying more of another than before is currency appreciation.
• Outsourcing: A company contracting another for website design is outsourcing.

Answer:

• A country or an individual concentrates all its productive efficiency on producing limited goods: Specialization
• Lisa can produce more pens than Tim with the same number of inputs: Absolute Advantage
• One unit of a currency buys more units of another currency than it did previously: Currency Appreciation
• A company contracts with another company to design its website: Outsourcing