Question

7 multiple choice 10 points
when a nation or individual concentrates its productive efforts on producing a limited variety of goods, this is called ______.

• specialization
• innovation
• cost
• growth

8 true or false 10 points
when someone makes a financial decision, this decision always comes with a consequence, whether it be good or bad. this consequence of this choice is called the cost of making the decision.

• true
• false

Explanation:

For question 7: The definition matches the economic concept of focusing production on a narrow set of goods. For question 8: The cost of a decision in finance/economics specifically refers to the value of the next best alternative (opportunity cost), not just any consequence.

Answer:

1. A. Specialization
2. B. False