Which of the following statements is TRUE? I. Trade allows people to specialize in their area of expertise, increasing society's output of goods and services. II. Specialization and the division of knowledge decreased with the fall of the Berlin Wall and opening of China's economy to the world. III. Society's knowledge is limited if everybody produces the same thing.
A) I only
B) II and III only
C) I and III only
D) II only

Question

Quizplus · Accepted Answer

Statement I is true, as trade does allow people to specialize in their area of expertise, increasing society's output of goods and services. Statement II is false, as specialization and the division of knowledge have increased with the fall of the Berlin Wall and the opening of China's economy to the world. Statement III is also true, as society's knowledge is limited if everybody produces the same thing. Therefore, only statements I and III are true, making C the correct answer.

Which of the Following Statements Is TRUE? I