Specialization in Trade Will Be Economically Efficient If It Is

question 274

Multiple Choice

Specialization in trade will be economically efficient if it is based upon

• A) national security needs.
• B) absolute advantage.
• C) comparative advantage.
• D) government regulations.

---

Definitions:

Market

A place or arena where buyers and sellers meet to exchange goods, services, or information, often determining the prices through the forces of supply and demand.

Sellers

Individuals or entities that offer goods or services for sale.

Tax

A mandatory monetary fee or different form of charge placed on a taxpayer by a government entity to finance government operations and assorted public expenses.

Good

A material item or service that satisfies a want or need; can be economic (having monetary value) or free (like air) but is essential for transactions in the market.