How does human specialization contribute to an economy's output?
A) It makes use of differences in abilities.
B) It is a process of creative destruction.
C) It works like an "invisible hand."
D) It decreases derived demand.

Question

Quizplus · Accepted Answer

Human specialization allows individuals to focus on tasks that they are comparatively better at, which leads to higher productivity and efficiency. This, in turn, contributes to an economy's output growth. By making use of differences in abilities, individuals and businesses can produce goods and services faster and more efficiently than if every person tried to do everything themselves.

How Does Human Specialization Contribute to an Economy's Output