Specialization and Trade Are Closely Linked to

question 27

Multiple Choice

Specialization and trade are closely linked to

• A)absolute advantage.
• B)comparative advantage.
• C)gains to some traders that exactly offset losses to other traders.
• D)shrinkage of the economic pie.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Selling Price

The amount of money for which a product or service is sold to the customer.

Distribution Costs

Expenses associated with delivering goods from production sites to points of sale and ultimately to customers.

Inventory Destroyed

Goods that have been damaged or ruined to such an extent that they cannot be sold or used.