With Respect to International Trade,specialization Means That

question 182

Multiple Choice

With respect to international trade,specialization means that

• A)each country consumes what it produces.
• B)labor is exported or imported in much the same way as other products.
• C)most goods and services that are traded internationally are produced in only 1 or 2 nations.
• D)each country consumes a small fraction of what it produces.
• E)labor and other resources in a nation are used to produce the products and services for which they are best suited.

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Definitions:

Shutdown Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which the firm should cease production to minimize losses.

Point

A specific location or position in a spatial setting or within a set of data.

Market Price

The price at which goods or services are currently sold on the open market.

Profits

The financial gain calculated as the difference between the revenue earned from sales and the expenses, taxes, and costs incurred in producing those sales.