People often choose to specialize and trade because:
A)it allows them to enjoy more goods than they can create on their own.
B)they can consume a bundle of goods beyond their own production possibilities.
C)it allows them to get to a point beyond their own production possibilities frontier.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

All of these statements are true. Specializing in a particular task, skill or trade allows individuals to increase their production output, which in turn allows them to consume a larger bundle of goods beyond their own production possibilities. By trading with others who specialize in other tasks, skills or trades, individuals are able to enjoy a wider variety of goods than they could create on their own. Additionally, by specializing and trading, individuals and societies can reach a higher level of production and consumption than they would be able to achieve on their own.

People Often Choose to Specialize and Trade Because