Why Is Specialization So Advantageous to Trade? I

question 73

Multiple Choice

Why is specialization so advantageous to trade? I. Through specialization, people and firms can achieve economies of scale. II. Through specialization, people and firms can use specialized machinery and techniques. III. Trade exists only between people and firms that have complete specialization in the goods they are best at producing.

• A) I only
• B) I, II, and III
• C) I and III only
• D) I and II only

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Definitions:

Vision

Vision refers to the ability to see, the act of envisioning future possibilities, or a mental image of what the future could or should be like.

Perception

The sorting out, interpretation, analysis, and integration of stimuli involving the sense organs and brain.

Sensation

The physical stimulation of the sense organs.

Stimuli

External factors or events that elicit a response from a sensory organ or organism.