Specialization and trade allow individuals to
A) consume outside their own production possibilities frontiers (PPFs).
B) shift their PPFs outward.
C) produce more goods with less technology.
D) eliminate scarcity.
E) produce fewer goods with less technology.

Question

Quizplus · Accepted Answer

Specialization allows individuals to focus on producing goods or services in which they have a comparative advantage, which means they can produce at a lower opportunity cost. This allows them to consume outside their own PPFs or attain a higher level of consumption than they would have been able to without trade.

Specialization and Trade Allow Individuals to