Trading Partners Should Specialize in Producing Goods in Accordance with Comparative

question 1

Multiple Choice

Trading partners should specialize in producing goods in accordance with comparative advantage,then trade and diversify in consumption because

• A) out-of-pocket costs of production decline
• B) free trade areas protect infant industries
• C) economies of scale are present
• D) manufacturers face diminishing returns
• E) more goods are available for consumption

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Definitions:

This Glass of Pepsi

A specific instance of a beverage, served in a glass, that is being referred to in the context.

Beverage

A liquid intended for human consumption to fulfill thirst and sometimes to provide nutrition or pleasure.

Concept

An abstract idea or a mental symbol used to understand or categorize things by grouping them based on common characteristics.

Furniture

Movable articles in a room or establishment that make it fit for living or working.