Final answer:
The correct economic terms for the provided scenarios are: 1. a) Absolute advantage, 2. b) Currency appreciation, 3. c) Currency depreciation, and 4. d) Outsourcing.
Step-by-step explanation:
Matching the correct economic term with each scenario presented involves understanding various concepts from international trade and currency markets. Here are the appropriate matches:
- Scenario: A country can produce a good more efficiently than any other country. a)Absolute advantage
- Scenario: The value of a country's currency increases relative to other currencies. b) Currency appreciation
- Scenario: The value of a country's currency decreases relative to other currencies. c) Currency depreciation
- Scenario: The practice of contracting out certain tasks or processes to external parties. d) Outsourcing
- Absolute advantage occurs when a country can use fewer resources to produce a good compared to other countries, allowing it to be more productive.
- Currency appreciation is the increase in value of a country's currency in terms of other currencies, also known as strengthening.
- Conversely, currency depreciation is the decrease in value, or weakening, of a currency against others.
- Outsourcing is the practice of contracting with another company to do a specific job that would otherwise be done by a company's own workers.