Which goods can be produced

a) Progress in science and technology leads to evolution in the size and quality of labor force,

the volume and composition of the capital stocks.

b) New technologies are expensive, as a rule, and of little efficiency, they do not effect the scale

and the quality of land and natural resources.

c) The quantity and quality of labor force undergo minor alterations.

3. The distribution of economic resources among the nations of the world is quite uneven.

a) The distribution of resources among nations is not of great importance.

b) Nations are substantially different in their endowments of economic resources.

c) Most countries have primary economic resources.

4. Any particular good is more profitable to produce by that nation which has the lower opportunity

Cost.

a) It is far from being so. One should think whether it is worth specializing in a particular good;

the opportunity cost does not matter.

b) It is really so as there will be obtained the greatest total output.

c) The opportunity cost is of little significance.

5. As a result of specialization and trade, nations have more differen t products.

a) Single individuals gain by trading, but the society does not acquire these products.

b) The majority of the residents of nation gain by specializing and trading.

c) Many nations are not willing to participate in the international division of labor.

6. Is there any rule to define principles by which specialization should be developed?

a) There is no such a rule as each nation needs all goods.

b) Yes, there is. It is the principle of comparative advantage.

c) It is a complex process. Specialization is developed according to the willingness of the management.