When countries specialize, total world output increases, and, therefore, the potential for greater total world consumption also increases.

Question

Quizplus · Accepted Answer

When countries specialize and produce goods and services in which they have a comparative advantage, they become more efficient and productive. This leads to an increase in total world output, as well as greater availability and variety of goods and services for consumers. As a result, the potential for greater total world consumption also increases.

When Countries Specialize, Total World Output Increases, And, Therefore, the Potential