A Person Can Benefit from Specialization and Trade by Obtaining

question 102

Multiple Choice

A person can benefit from specialization and trade by obtaining a good at a price that is

• A)lower than his or her opportunity cost of that good.
• B)the same as his or her opportunity cost of that good.
• C)higher than his or her opportunity cost of that good.
• D)different than his or her opportunity cost of that good.

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Definitions:

Deficit

A deficit occurs when expenses exceed revenues, imports exceed exports, or liabilities exceed assets.

Current Expenditures

Spending by the government or an organization on short-term items that are consumed within the fiscal year, such as wages, utilities, and supplies.

Future Generations

Future generations refer to the people who will live at some point in the future, and whose well-being is considered in discussions about sustainability and long-term environmental policies.

Inflation Rate

The percentage increase in the price level of goods and services over a period of time, typically measured on an annual basis.