In Addition to Realizing the Benefits of Specialization According to Comparative

question 53

Multiple Choice

In addition to realizing the benefits of specialization according to comparative advantage,a nation that engages in international trade and specialization may realize benefits from

• A)economies of scale and learning by doing.
• B)diseconomies of scale and learning by doing.
• C)learning by doing and increased opportunity costs.
• D)a devaluation of its currency.
• E)a less diversified economy.

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Definitions:

Greenhouse Effect

A natural process by which certain gases in the Earth's atmosphere trap heat, warming the planet and making it habitable, but which is exacerbated by human activities leading to climate change.

Environmental Issues

Problems related to the natural environment, including pollution, climate change, and biodiversity loss.

Environmental Costs

The negative impacts on the environment resulting from human activities, including pollution, resource depletion, and habitat destruction.

Market Costs

Expenses associated with buying, selling, and producing goods or services within a market economy.