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:

Higher Needs

Advanced psychological needs such as self-actualization and esteem needs, following basic physiological and safety needs in Maslow's hierarchy.

Lower Needs

Basic physiological and safety requirements in Maslow's hierarchy, essential for an individual's survival.

Humanistic Psychology

A psychological perspective that emphasizes the study of the whole person, and the uniqueness of each individual's experience, focusing on personal growth and the concept of self-actualization.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.