Both Maria and Jorge bake cookies and bread, but Maria spends less time baking each batch of cookies and each loaf of bread than Jorge does. Specialization and trade between them can benefit:
A) both Maria and Jorge.
B) Maria, but not Jorge.
C) Jorge, but not Maria.
D) neither Maria nor Jorge.

Question

Quizplus · Accepted Answer

Specialization and trade can benefit both Maria and Jorge because Maria is more efficient in baking cookies and bread. Since Maria spends less time baking each batch of cookies and each loaf of bread, she can produce more cookies and bread in the same amount of time as Jorge. Therefore, if Maria specializes in baking cookies and bread, while Jorge specializes in something else, Maria can make more cookies and bread than she could otherwise. Meanwhile, Jorge can specialize in whatever he is more efficient in, which could be another type of food or some other product, and trade with Maria to get the cookies and bread that he needs. This way, both Maria and Jorge can produce and consume more than they could before.

Both Maria and Jorge Bake Cookies and Bread, but Maria