Specialization of labour led to greater efficiency in the allocation of resources because of
A)the principle of comparative advantage.
B)an increase in total work effort.
C)greater reliance on self- sufficiency.
D)the use of barter.
E)the opportunity cost of labour increased.

Question

Quizplus · Accepted Answer

The principle of comparative advantage states that individuals, firms, and countries should specialize in producing goods or services for which they have the lowest opportunity cost and trade with others for goods or services for which they have a higher opportunity cost. Specialization of labour allows individuals or firms to focus on tasks that they are most efficient at and have the lowest opportunity cost, resulting in greater overall efficiency in the allocation of resources.

Specialization of Labour Led to Greater Efficiency in the Allocation