Two characteristics of a modern economy are
A)barter and self-sufficiency.
B)specialization and exchange.
C)a low standard of living a high poverty rate.
D)self-sufficient workers and very little international trade.

Question

Quizplus · Accepted Answer

Specialization and exchange are two key characteristics of a modern economy. Specialization refers to the division of labor whereby individuals and businesses focus on producing goods and services in which they have a comparative advantage, which enables them to produce more efficiently and at a lower cost. Exchange refers to the process of buying and selling goods and services, which allows people to access a wider range of goods and services than they could produce on their own. Barter and self-sufficiency (A) and self-sufficient workers and little international trade (D) are not characteristic of modern economies. A low standard of living and high poverty rate (C) are not desirable features of any economy.

Two Characteristics of a Modern Economy Are