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:

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People who can be useful because of the talent of their creative insights and strategy.

Influencers

Individuals who have the power to affect the purchasing decisions of others because of their authority, knowledge, position, or relationship with their audience.

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Troll

An individual who posts inflammatory, extraneous, or off-topic messages in an online community, often to provoke or upset others.