The Concepts of Comparative Advantage,specialization,and Trade

question 51

Multiple Choice

The concepts of comparative advantage,specialization,and trade:

• A) can be useful in explaining why countries import and export certain goods.
• B) can be useful in explaining why individuals typically work at one job, and buy the other goods and services they need.
• C) can be useful in explaining why we allow ourselves to be interdependent on others.
• D) All of the statements are true.

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Definitions:

Excavation

The process of removing soil, rock, or other materials from a site to form an open hole or cavity.

Purchase Discount

A reduction in price granted by a supplier to a buyer for early payment of an invoice.

Freight-In

The cost associated with transporting goods into a warehouse or to the buyer, often included in the inventory cost.