A rock carving from ancient Norway depicts two identical people doing different jobs in the same boat: one uses a bow to hunt while the other paddles. How does this early example illustrate the benefits of trade?
A) One prefers to hunt while the other prefers to paddle the boat; this is an example of diverse preferences.
B) One learns to be very good at paddling and one learns to be very good at hunting; this is an example of specialization and division of knowledge.
C) The paddler is stronger than the hunter so the paddler sacrifices a lot by hunting; this is an example of comparative advantage.
D) There is no trade in this example since no goods are being exchanged.

Question

Quizplus · Accepted Answer

The rock carving illustrates the benefits of trade through specialization and division of knowledge. One person becomes an expert at hunting while the other becomes an expert at paddling. They are able to work together efficiently and effectively, allowing them to achieve more than they could individually. This is the foundation of trade - individuals specializing their skills and expertise and trading with others who have specialized in different areas to increase overall productivity and wealth.

A Rock Carving from Ancient Norway Depicts Two Identical People