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.

---

Definitions:

Wholesaling

The selling of goods in large quantities at lower prices to be retailed by others.

High Initial Financing

The large amount of capital required at the start of a venture or project to cover costs before generating revenue.