Why Should an Economy Specialize and Trade According to Its

question 38

Essay

Why should an economy specialize and trade according to its marginal cost advantage or comparative advantage?

---

Definitions:

Profit-Sharing Program

An incentive scheme whereby employees receive a share of the company’s profits, usually in addition to their regular salary.

Tons

A unit of weight equivalent to 2,000 pounds in the United States (short ton) or 2,240 pounds in the United Kingdom (long ton).

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Extremely Diverse

Referring to a broad spectrum of differences among people or entities, including but not limited to culture, ethnicity, opinions, and skills.