One of the major results of the greater specialization of labour is that
A)there is an increased need for government to intervene in the marketplace.
B)there is a greater need for trade.
C)the circular flow of income contracts.
D)each worker must become more self- sufficient.
E)the overall output of the economy declines.

Question

Quizplus · Accepted Answer

The greater specialization of labour leads to an increase in the division of labour, which in turn leads to a greater need for trade to acquire the goods and services that others produce. This is because when each worker specializes in a particular task, they become more efficient at it, which increases overall output. However, this also means that they are producing fewer goods and services than if they were producing a variety of goods and services themselves. Therefore, they need to trade with others to acquire the goods and services they need but do not produce themselves.

One of the Major Results of the Greater Specialization of Labour