What Is Gained When People Engage in Specialization and Trade

question 244

Multiple Choice

What is gained when people engage in specialization and trade?

• A) Specialization and trade allow people to consume outside their individual production possibilities frontiers.
• B) Specialization and trade allow people to consume inside their production possibilities frontiers.
• C) Specialization and trade allow people to consume at a point on their production possibilities frontiers.
• D) Specialization and trade allow people to produce outside their individual production possibilities frontiers.
• E) There are no gains from specialization and trade.

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Definitions:

Entrepreneur

An individual who initiates, manages, and assumes the risks of a business or enterprise, aiming for economic profits.

Entrepreneurial Ability

The unique set of skills, insights, and attitudes necessary to identify opportunities and mobilize resources effectively to establish and grow a venture.

Passive Resources

Resources that are not actively managed but contribute to production or value through their existence or inherent attributes.

Entrepreneur

An individual who creates and manages a business venture in order to gain profit by taking on financial risks.