The Concepts of Comparative Advantage, Specialization, and Trade Can Be

question 141

Multiple Choice

The concepts of comparative advantage, specialization, and trade can be useful in explaining why:

• A) countries import and export certain goods.
• B) individuals typically work at one job, and buy the other goods and services they need.
• C) we allow ourselves to be interdependent on others.
• D) All of these statements are true.

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Definitions:

Bilateral

Bilateral refers to involving two parties, typically countries or individuals, especially in agreements, treaties, or transactions where both sides have reciprocal obligations or rights.

Promise

A commitment or assurance given by one party to another that they will do or not do something in the future.

Offeror

The party in a contractual agreement who proposes the terms of an offer to another party (the offeree).

Consideration

Consideration refers to something of value promised to another party in exchange for something else, forming a legal reason for parties to enter into a contract.