The Benefits to Specialization Are Even Greater When Two Trading

question 104

Multiple Choice

The benefits to specialization are even greater when two trading partners have:

• A)absolute advantages in producing the same goods.
• B)similar consumption preferences.
• C)very similar opportunity costs.
• D)large differences in opportunity costs.

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Definitions:

Piaget's Theory

A theory of cognitive development that describes how children's intellect grows through four stages as they learn to understand the world.

Representational Thinking

A cognitive process in which abstract concepts are understood by linking them to concrete experiences or symbols.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept developed during infancy.

Task Procedures

The specific set of steps or actions to be followed in order to complete a task or experiment.