Economic analysis suggests that gains from specialization and exchange
A) will not be realized unless a central planning authority requires that all goods be produced by the low opportunity cost supplier.
B) will be realized if individuals are allowed to pursue goals that are in their own self-interest.
C) will not be realized unless business firms employ economists when making decisions about the proper combination of resources to utilize in the production process.
D) will be realized if individuals place the public interest above the pursuit of their own self-interest.

Question

Quizplus · Accepted Answer

When individuals pursue their own self-interest, they tend to specialize in activities where they have a comparative advantage, leading to more efficient production and gains from trade.

Economic Analysis Suggests That Gains from Specialization and Exchange