The total amount of consumption of a society can be increased if
A)firms allow each worker to perform multiple tasks.
B)resources are allocated by a central planning group.
C)individuals engage in specialization and voluntary trade.
D)barter exchange is used in place of money.

Question

Quizplus · Accepted Answer

Specialization and voluntary trade allow individuals to produce and exchange goods and services that they are best at, resulting in increased efficiency and productivity. This increases the total amount of consumption possible in a society. The other options do not necessarily lead to an increase in consumption. A is related to productivity, B is related to central control and planning, and D eliminates the use of money, which can make transactions more difficult and limit the ability to access goods and services.

The Total Amount of Consumption of a Society Can Be