Which of the Following Statements Is TRUE About Trade

question 29

Multiple Choice

Which of the following statements is TRUE about trade?

• A) Everyone can benefit from trade, even people who trade with someone from a foreign country.
• B) Comparative advantage is based on specializing in products that have a high opportunity cost of production.
• C) If a person can do everything better than anyone else, there is no reason for that person to trade with others.
• D) Trade makes one party better off but the other party worse off, so there is no net gain to society.

---

Definitions:

Organization

An entity comprising multiple people working together towards a common goal, which can be classified as businesses, government bodies, or not-for-profits.

Industry Trends

Refers to the prevailing directions or developments in any given industry, often determined by consumer behavior, technological advancements, and regulatory changes.

Competitors

Entities, either companies or individuals, that compete in the same industry or market for customers.

Situation Analysis

An assessment of an organization's internal and external environments to understand its capabilities, customers, and business climate.