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:

Being Proactive

Taking initiative by acting in advance of a future situation, rather than just reacting, to achieve positive outcomes.

Monitoring

The continuous and systematic process of tracking, analyzing, and responding to information or trends related to a specific topic, organization, or project.

Reacting

The process of responding or adjusting to stimuli, events, or actions, often implying a spontaneous or immediate response without prior planning.

Crisis Phase

A critical period during which decisive action is required to manage and resolve a threatening situation to an organization or society.