A required element for specialization to lead to an increase in the satisfaction of society's wants is
A) a capitalist economy.
B) exchange and trade.
C) the use of money.
D) a central plan.

Question

Quizplus · Accepted Answer

Specialization allows individuals to specialize in tasks they are efficient at and trade with others for goods and services they need. This exchange and trade increase the overall satisfaction of society's wants. A capitalist economy and the use of money may facilitate this exchange and trade, but they are not the required element for specialization to lead to an increase in satisfaction. A central plan, on the other hand, can limit the ability for individuals to specialize and trade, potentially decreasing satisfaction.

A Required Element for Specialization to Lead to an Increase