An Existing Comparative Advantage Can Be Further Magnified by Specialization

question 28

Multiple Choice

An existing comparative advantage can be further magnified by specialization because:

• A) it eliminates the need to switch from one task to another.
• B) repetition results in boredom.
• C) a variety of tasks will rise.
• D) small tasks will be merged into larger tasks.

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Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services.

Market Basket

A fixed list of items used to track the progress of inflation in an economy.

CPI

A gauge for inflation, the Consumer Price Index analyzes the weighted average price of a collection of consumer products and services.

GDP Deflator

An index that measures the prices of all new, domestically manufactured, final goods and services in a country's economy.