The Greater the Degree of Specialization in the Economy

question 180

Multiple Choice

The greater the degree of specialization in the economy,

• A)the easier it is to discover a double coincidence of wants
• B)the more feasible a barter system is
• C)the less likely it is that monetary exchange will develop
• D)the harder it is to negotiate an exchange rate between all pairs of goods
• E)the more likely it is that individual consumers are self-sufficient

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Definitions:

Diversification Strategy

An approach to business growth through increasing the variety of products, services, or markets served.

Different Business Areas

Various functional sectors within a company, such as finance, marketing, operations, or human resources, each responsible for specific tasks.

Diversification

A strategy that involves entering into new markets or industries or creating new products to spread and reduce risks.

New

Recently developed, created, or having started to exist not long ago.