The specialization in production made possible by the use of money to avoid barter is an illustration of the
A) scarcity principle.
B) principle of comparative advantage.
C) principle of increasing opportunity cost.
D) benefits of diversification.
E) cost-benefit principlE.

Question

Quizplus · Accepted Answer

The use of money to avoid barter enables individuals and countries to specialize in the production of goods and services that they are relatively efficient at producing, leading to the principle of comparative advantage. This allows for greater efficiency and lower costs in production, ultimately benefiting the economy as a whole.

The Specialization in Production Made Possible by the Use of Money