A required element for specialization to lead to an increase in the satisfaction of society's wants is:
A) A capitalist economy
B) Exchange and trade
C) The use of money
D) A central plan

Question

Quizplus · Accepted Answer

Specialization leads to an increase in the efficiency of production, but this only results in an increase in the satisfaction of society's wants if there is exchange and trade between specialized producers. This allows for a wider variety of goods and services to be available to consumers, ultimately increasing their satisfaction. A capitalist economy and the use of money may facilitate exchange and trade, but they are not necessary for specialization to lead to an increase in satisfaction. A central plan, on the other hand, may prevent specialization from occurring in the first place, as it involves strict government control over the economy.

A Required Element for Specialization to Lead to an Increase