Fundamentally, to reap the benefits of specialization, an economy must
A)be heavily industrial.
B)be heavily agricultural.
C)have an extensive system of higher education.
D)develop ways for individuals to trade goods with one another.

Question

Quizplus · Accepted Answer

Specialization allows individuals to focus on producing goods and services they are most efficient at, but in order to benefit from this efficiency, individuals need to be able to exchange the goods and services they specialize in for products they need but do not produce themselves. This is made possible through trade, which requires developed systems of exchange such as markets, trade agreements, and currencies. Therefore, the economy must develop ways for individuals to trade goods with one another in order to successfully reap the benefits of specialization.

Fundamentally, to Reap the Benefits of Specialization, an Economy Must