Which of the following results in international specialization? Diseconomies of
ID: 1162143 • Letter: W
Question
Which of the following results in international specialization?
Diseconomies of scale in production
A high world price for a good
Differing consumer tastes
Diminishing returns to a variable factor of production
Differences in the benefits that consumers and producers get from the exchange of goods and services
a.Diseconomies of scale in production
b.A high world price for a good
c.Differing consumer tastes
d.Diminishing returns to a variable factor of production
e.Differences in the benefits that consumers and producers get from the exchange of goods and services
Explanation / Answer
Ans: Differences in the benefits that consumers and producers get from the exchange of goods and services.
Explanation:
A nation can specialize in the production of those goods in which it has comparative advantage over other nations and trade the goods and service with other nations.