Specialization in production is economically beneﬁcial primarily because it
A) allows everyone to have a job that he or she likes.
B) permits the production of a larger output with ﬁxed amounts of resources.
C) facilitates trade by bartering.
D) guarantees full employment.

Question

Quizplus · Accepted Answer

Specialization in production allows individuals or firms to focus on producing a specific good or service in which they have a comparative advantage. This results in increased efficiency and productivity, as the specialized producers can produce more output with the same amount of resources. This, in turn, leads to a larger overall output, which benefits both the producers and consumers.

Specialization in Production Is Economically Beneﬁcial Primarily Because It