Increased specialization in the production of goods
A) always increases economic surplus.
B) never increases economic surplus.
C) has benefits,but no costs.
D) has costs,but no benefits.
E) has costs and benefits.

Question

Quizplus · Accepted Answer

Increased specialization in the production of goods has both costs and benefits. The benefits include increased efficiency, productivity, and quality of goods produced, which can lead to lower costs and higher profits. However, the costs include the increased risk of dependency on specific industries or technologies, and may also contribute to income inequality and job displacement in certain sectors. Overall, the benefits and costs of increased specialization depend on the specific context and the extent of specialization.

Increased Specialization in the Production of Goods