II.4

Trade and specialization

ZE7

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Answer 3 out of 4 questions correctly.

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Trade happens when people agree to exchange goods and services. People give up something to get something else. Sometimes people

barter,

or directly exchange one good or service for another.

Terrence and Ling open their lunch boxes in the school cafeteria. Neither Terrence nor Ling got everything that they wanted. The table below shows which items they each wanted:

Items Terrence wants	Items Ling wants
a sandwich oranges broccoli water	a hot dog tomatoes almonds water

Look at the images of their lunches. Then answer the question below.

Terrence's lunch	Ling's lunch

What can Terrence and Ling trade to each get what they want?

Ling can trade her almonds for Terrence's tomatoes.

Ling can trade her broccoli for Terrence's oranges.

Terrence can trade his tomatoes for Ling's carrots.

Terrence can trade his tomatoes for Ling's broccoli.

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II.1What is economics?

II.1

What is economics? - Seventh grade GPQ