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

Question

Quizplus · Accepted Answer

Specialisation and trade allow people to consume outside their individual production possibilities frontiers. This means that individuals and countries can focus on producing what they are most efficient at and trade with others for goods and services that they cannot produce as efficiently, resulting in increased productivity and overall economic growth.

What Is Gained When People Engage in Specialisation and Trade