When a Smaller Country with Fewer Resources Specializes Its Production

question 6

Multiple Choice

When a smaller country with fewer resources specializes its production and gains access to larger,international markets,this can create

• A) a smaller distribution network.
• B) increased per-unit costs.
• C) decreased sales.
• D) economies of scale.
• E) inefficiencies.

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Definitions:

Ownership

The legal right or title to an asset or property, implying control and responsibility over it.

Jelly

A food spread made from fruit juice and sugar, thickened with pectin, commonly consumed with bread.

Peanut Butter

A food paste or spread made from ground dry roasted peanuts, often used in sandwiches and as a base in various recipes.

Demand

The desire and ability of consumers to purchase goods or services at a given price level.