People choose to specialize because:
A)it can lead to more consumption than being self-sufficient.
B)it can lead to consumption beyond the production possibilities frontier.
C)it allows people to acquire goods at a lower opportunity cost.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Specialization allows individuals to focus on producing goods or providing services in which they have a comparative advantage, meaning they can produce those goods or services at a lower opportunity cost than others. This leads to an increase in overall production and consumption, as individuals can trade with others who specialize in other goods or services. As a result, specialization can lead to higher consumption than being self-sufficient and can allow individuals to consume beyond the production possibilities frontier.

People Choose to Specialize Because