1. What is specialization?*

2. How does division of labor increase productivity?*

3. What is the main reason Americans specialize more today than the early pioneers did?*

4. In a voluntary exchange, why do people give something up?

5. What does it mean to say that Jen has a comparative advantage over Julian for weeding people's gardens?

6. What is a main reason for national differences in comparative advantage in producing raw materials?*

7. Why has much clothing manufacturing moved from the United States to other countries?*

8. How does trade increase the value of an item?*

9. Which term best describes the fact that we depend on others to produce most of the goods and services we want?

10. The law of demand states that as quantity demanded decreases...*

11. In the summer picnic season, a sharp rise in the price of burgers may lead to an increase in demand for*

12. Quantity demanded moves along the demand curve in response to changes in*

13. What happens to demand for clothes in a clothing store when blizzards keep customers at home?*

14. Supply depends on the willingness and ability of*

15. According to the law of supply, what happens as price increases?*

16. What could increase the supply of soccer balls?*

17. The degree to which the quantity demanded responds to changes in price is called*

18. What type of goods or services are more likely to quickly become available in larger quantities as a result of a price increase5. What is diminishing marginal utility?*

19. What type of goods or services are more likely to quickly become available in larger quantities as a result of a price increase

20. What is diminishing marginal utility?

21. What is market equilibrium?*

22. How is the market-clearing price determined?*

23. The equilibrium price is the price at which*

24. If a manufacturer introduces a new product with a successful advertising campaign and an artificially low introductory price, what happens?*

25. Which event in Florida and California would most likely shift the supply curve for orange juice to the left?*