when people specialize in goods and services that they can easily provide at a low cost course hero

What is a low cost producer Quizlet?

Transcribed image text: QUESTION 1 When people specialize in the production of goods and services they can provide at a low cost O They will be stuck with a surplus of those goods or services and will be unable to get rid of them O They can trade those goods for revenues and use the revenues to purchase goods that would have been costly to produce themselves O …

What is an example of specialization in trade?

Dec 21, 2006 · Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in ...

What is the comparative advantage of a specialized economy?

International trade leads countries to specialize in goods and services in which they have a comparative advantage. The terms of trade determine the extent to which each country will specialize. Each will increase production of the good or service in which it has a comparative advantage up to the point where the opportunity cost of producing it ...

Who provides the goods and services provided by the government?

When an entity can produce a good at a lower opportunity cost?

Comparative advantageComparative advantage refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume or quality. Comparative advantage is a key insight that trade will still occur even if one country has an absolute advantage in all products.

What concept is most important in determining which good a person or nation will specialize in the production of?

comparative advantage is the key to determining specialization and trade. Countries have a comparative advantage in production when they can produce a good or service at a lower opportunity cost than other producers.

Why do people specialize and trade with specialization and trade people?

Why do people choose to specialize and trade? People often choose to specialize and trade because: it will allow them to enjoy more goods than they can create on their own. … the terms of trade fall between their opportunity costs for producing the goods on their own.Feb 7, 2022

How can the United States benefit from specialization and trade?

The benefits of specialization include a larger quantity of goods and services that can be produced, improved productivity, production beyond a nation's production possibility curve, and finally, resources that can be used more efficiently.Aug 14, 2021