Which of the following best explains the term "specialization" with respect to trade?
A) Specialization occurs when a people concentrate their productive resources on the goods and services they can produce most efficiently.
B) Specialization occurs when one person can produce more of a particular good than another person.
C) Specialization refers to the absolute advantage that a person enjoys in the production of goods and services.
D) Specialization refers to the ability of a person to produce more of a good than his or her trading partners.

Question

Quizplus · Accepted Answer

Specialization refers to a situation where a nation or individual focuses on producing a specific good or service, which they can produce efficiently with fewer resources. This allows for increased productivity and efficiency, which ultimately can lead to increased trade and economic growth. Choice A best explains this concept.

Which of the Following Best Explains the Term "Specialization" with Respect