When People Specialize in the Activity in Which They Have

question 40

Multiple Choice

When people specialize in the activity in which they have a comparative advantage,

• A)there cannot be a division of labor, though production will increase.
• B)there will likely be a division of labor as well as an increase in output.
• C)there will be a gain from trade, but production will not be increased.
• D)there will likely be a division of labor, and output will stay the same.
• E)there will likely be a division of labor, and output will decline.

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Definitions:

Interest Rate

The cost of borrowing money or the return on savings, expressed as a percentage of the amount borrowed or saved.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, typically expressed as an annual rate.

Investment Project

A project involving the allocation of funds or resources towards a venture with the expectation of generating income or profit in the future.

Investment Project

A planned set of capital expenditures and activities aimed at generating future benefits or returns.