What is gained when people engage in specialisation and trade?
A)Specialisation and trade allow people to produce outside their individual production possibilities frontiers.
B)There are no gains from specialisation and trade.
C)Specialisation and trade allow people to consume inside their production possibilities frontiers.
D)Specialisation and trade allow people to consume at a point on their production possibilities frontiers.
E)Specialisation and trade allow people to consume outside their individual production possibilities frontiers.

Question

Quizplus · Accepted Answer

Specialisation and trade enable individuals to focus on producing goods where they have a comparative advantage, allowing them to trade for other goods and consume beyond their own production capabilities.

What Is Gained When People Engage in Specialisation and Trade