Questions-Answers about trading

Which best explains how trade enables greater specialization among producers

Trade

Which best explains why large companies pay less for goods from wholesalers?

Which best explains why large companies pay less for goods from wholesalers? Large companies can buy all or most of a wholesaler’s stock. Which best explains why online retail companies have an advantage over regular stores? They have a larger number of potential customers because people anywhere can buy from them.

Which best explains one of the benefits provided by economies of scale?

Borrowing money becomes more expensive and there is less investment in production. Which best explains one of the benefits provided by economies of scale? A larger customer base enables retailers to pay lower prices for wholesale goods. … They can buy wholesale goods cheaply because they have so many customers.

Which benefit is the result of specialization?

Consumer benefits: Specialization means that the opportunity cost of production is lower, which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantity of goods.

Which of the following best explains why companies like Amazon and Walmart can sell things more cheaply than others who sell the same product?

Large companies can negotiate better prices with wholesalers. Which best explains why companies like Amazon and Wal-Mart can sell things more cheaply than others who sell the same products? They can buy wholesale goods cheaply because they have so many customers.

Which best explains cost push inflation?

Which best explains cost-push inflation? Increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. Which is an example of a fiscal policy? … Large companies can negotiate better prices with wholesalers.

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Why Amazon can sell books more cheaply than local bookstores?

A larger customer base enables retailers to pay lower prices for wholesale goods. Which best explains why Amazon can sell books more cheaply than local bookstores? Amazon is able to buy all or most of the books printed by a publisher.

Which is the cause of demand pull inflation?

Demand-pull inflation is the upward pressure on prices that follows a shortage in supply. Economists describe it as “too many dollars chasing too few goods.” … When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.

Which is a phase of the business cycle?

Business Cycle Phases

Business cycles are identified as having four distinct phases: expansion, peak, contraction, and trough. An expansion is characterized by increasing employment, economic growth, and upward pressure on prices.

What happens when unemployment increases during a recession?

A recession is a period of economic contraction, where businesses see less demand and begin to lose money. To cut costs and stem losses, companies begin laying off workers, generating higher levels of unemployment.

What are two advantages to specialization?

Advantages from specialisation (division) of labour:

  • Higher productivity and efficiency – e.g. rising output per person hour.
  • Lower unit costs leading to higher profits.
  • Encourages investment in specific capital – economies of scale.

Which is an example of specialization?

If, for example, a country can produce bananas at a lower cost than oranges, it can choose to specialize and dedicate all its resources to the production of bananas, using some of them to trade for oranges. Specialization also occurs within a country’s borders, as is the case with the United States.

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What are the pros and cons of specialization?

Job Specialization Pros & Cons

  • Increases Productivity. Job specialization is advantageous because it increases productivity. …
  • Fosters Independence. Specialized workers become independent employees, once they learn the required skills to perform their jobs. …
  • May Lead to Boredom. …
  • Diminished Career Development.

Is Walmart products lower quality?

Walmart’s price match service means that it often has the lowest price around. … “Walmart’s HDTVs are at ‘low’ prices because they are the lower-quality versions than those sold elsewhere,” Lori McDaniel, senior content manager for Offers.com, told Go Banking Rates.

Why are products cheaper at Walmart?

Several people have already mentioned that due to Walmarts size they have a lot of purchasing power. They can buy items for cheaper due to large orders and sell for cheaper due to the high volume of sales. … Walmart cut costs by being so well run. Walmart has some of the best supply chain systems out there.

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