The Benefits to Specialization Are Enhanced When Two Trading Partners

question 4

Multiple Choice

The benefits to specialization are enhanced when two trading partners have:

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

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Definitions:

Sharp

Often used to describe something with a fine edge or point capable of cutting or piercing, or an acute, piercing quality of thought or perception.

Metaphor

A figure of speech in which a term or phrase is applied to something to which it is not literally applicable in order to suggest a resemblance.

Cactuses

The plural form of cactus, referring to spiny plants that are native to arid environments.

Desert

A barren area of landscape where little precipitation occurs and consequently living conditions are hostile for plant and animal life.