-Refer to Table 3-3. How could Maria and Courtney both benefit?
A) by Maria specializing in coats and Courtney specializing in sweaters
B) by Maria specializing in neither good and Courtney specializing in both goods
C) by Maria specializing in sweaters and Courtney specializing in coats
D) by Maria specializing in both goods and Courtney specializing in neither good

Question

-Refer to Table 3-3. How could Maria and Courtney both benefit?
A) by Maria specializing in coats and Courtney specializing in sweaters 
B) by Maria specializing in neither good and Courtney specializing in both goods 
C) by Maria specializing in sweaters and Courtney specializing in coats 
D) by Maria specializing in both goods and Courtney specializing in neither good

Quizplus · Accepted Answer

Maria and Courtney can both benefit from specialization if they each focus on producing the good for which they have a comparative advantage. Without specific data from Table 3-3, the general principle of comparative advantage suggests that if Maria specializes in coats and Courtney in sweaters, they can trade to achieve a combination of goods that would not be possible without specialization and trade. This allows both to enjoy a higher standard of living than they would in isolation or without specialization.