The Importance of the Global Market and Global Trade: Role & Advantages

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

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What is the BEST explanation of a global market?

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1. Which of the following concepts was developed by Adam Smith?

2. How does absolute advantage differ from comparative advantage?

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About This Quiz & Worksheet

Use this quiz/worksheet combo to help you test your understanding of the global market and global trade. Some of the topics you'll be assessed on include an explanation of a global market as well as identifying the concepts developed by Adam Smith and David Ricardo.

Quiz & Worksheet Goals

In these assessments you'll be tested on:

  • Explanation of a global market
  • Concepts developed by Adam Smith and David Ricardo
  • Calculating opportunity costs
  • Reason(s) supporting global trade

Skills Practiced

This quiz and worksheet allow students to test the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on the global market and global trade
  • Interpreting information - verify that you can read information regarding how to calculate opportunity costs and interpret it correctly
  • Information recall - access the knowledge you've gained regarding the reason(s) for favoring global trade
  • Knowledge application - use your knowledge to answer questions about concepts developed by Adam Smith and David Ricardo

Additional Learning

To learn more about global economies, review the accompanying lesson on The Importance of the Global Market and Global Trade: Role & Advantages. This lesson covers the following objectives:

  • Define globalization and explain how global markets and globalization are related
  • Describe economist Adam Smith's concept of absolute advantage
  • Compare and contrast David Ricardo's theory of comparative advantage with Adam Smith's theory of absolute advantage
  • Tell what an opportunity cost is at relates to the theory of comparative advantage
  • Understand why global trade is important
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