Specialization and exchange

Question

Quizplus · Accepted Answer

Specialization allows individuals and countries to focus on producing goods and services they are relatively more efficient at producing. This leads to an increase in productivity, output, and income. Exchange, on the other hand, allows individuals and countries to access goods and services that they cannot produce or produce efficiently themselves. This leads to a wider variety of goods and services being available at lower prices, and increases the overall welfare of society.

Specialization and Exchange