Which of the Following Best Explains the Term "Specialization" with Respect

question 171

Multiple Choice

Which of the following best explains the term "specialization" with respect to trade?

• A) Specialization occurs when a people concentrate their productive resources on the goods and services they can produce most efficiently.
• B) Specialization occurs when one person can produce more of a particular good than another person.
• C) Specialization refers to the absolute advantage that a person enjoys in the production of goods and services.
• D) Specialization refers to the ability of a person to produce more of a good than his or her trading partners.

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Definitions:

Competitive Advantage

A condition or unique attribute that allows a company to outperform its competitors, securing a superior position in the market.

Market Opportunity

The identification of a specific market need that can be met by a new product or service, offering potential for business growth.

Sole Proprietor

A business owned and run by one individual where there's no legal distinction between the owner and the business entity.

Scalability

The capability of a system, business model, or product to handle a growing amount of work or to be enlarged to accommodate that growth.