What is gained when people engage in specialization and trade?
A)Specialization and trade allow people to produce outside their individual production possibilities frontiers.
B)Specialization and trade allow people to consume inside their production possibilities frontiers.
C)Specialization and trade allow people to consume outside their individual production possibilities frontiers.
D)Specialization and trade allow people to consume at a point on their production possibilities frontiers.
E)There are no gains from specialization and trade.

Question

Quizplus · Accepted Answer

Specialization and trade enable individuals to consume beyond their own production capabilities by allowing them to focus on producing goods where they have a comparative advantage and trade for other goods.

What Is Gained When People Engage in Specialization and Trade