● Which of these best describes an opportunity cost? a trade-off ● The term efficiency, often used in conjunction with absolute advantage, is defined as making the best use of resources. ● Which best describes how consumers may benefit from specialization? Consumers find products at lower prices. ● Which company has the comparative advantage in cost per pound of coffee? Turkish Coffee Company ● Which best explains why producers choose to specialize? Choose two answers. to gain a comparative advantage and to increase efficiency ● Which most likely results from producers engaging in specialization? Producers reduce their costs. ● When discussing comparative and absolute advantage, which best describes specialization? limiting the types of goods and services produced ● Which calculation helps determine which producer has the absolute advantage? Amount produced divided by resources used ● Specialization is the act of limiting the types of goods and services produced. ● Which describes a way in which consumers most likely benefit from producers’ absolute advantage? Prices decrease as a result of increased production efficiencies.