The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of the:
A)principle of comparative advantage.
B)scarcity principle.
C)equilibrium principle.
D)incentive principle.

Question

Quizplus · Accepted Answer

This example illustrates the Principle of Comparative Advantage, that overall productivity increases when producers concentrate on those activities at which they are relatively most efficient.

The Introduction of New Technologies That Allow Producers to Specialize