Specialization in production
A)raises productivity.
B)requires money.
C)stimulates exchange.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Specialization in production raises productivity by allowing individuals, firms, and countries to focus on producing the goods or services that they can produce more efficiently, resulting in higher output with fewer resources. However, specialization also requires money to invest in equipment, training, and other resources necessary to improve efficiency. Finally, specialization stimulates exchange as individuals and firms can specialize in producing certain goods or services, then trade with others who have specialized in different goods or services, leading to greater economic growth and prosperity.

Specialization in Production