Which Is Not a Benefit from Specialization and Trade

question 212

Multiple Choice

Which is not a benefit from specialization and trade?

• A)World output is increased.
• B)The range of goods and suppliers is increased.
• C)There is more competition.
• D)There may be a more efficient scale of operation for firms with international markets.
• E)All of the choices are benefits from specialization and trade.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the individual increases, inversely related to income.

Normal Good

A good for which demand increases as the income of the consumer increases, reflecting a direct relationship between income and demand.

Income Increases

A rise in the amount of money earned by individuals or households, often measured on an annual basis.

Supply of Cornflakes

Refers to the total quantity of cornflakes that producers are willing to sell at a given price over a specific period.