Asked by Marie Monville on Jun 30, 2024

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If people specialize in producing those goods for which they possess a comparative advantage,then an economy as a whole can produce a greater quantity of goods.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.

Specialize

Focusing one’s efforts in a specific domain or area of expertise, often to increase efficiency and skill.

Greater Quantity

A higher amount or number of something, usually used in reference to the production or supply of goods.

  • Realize the importance of specialization and how it affects productivity.
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BG
Braden GourleyJul 04, 2024
Final Answer :
True
Explanation :
This is the basic principle of comparative advantage, which states that if countries (or individuals) specialize in producing goods for which they have a lower opportunity cost, then they can trade with other countries (or individuals) to gain access to a wider range of goods at a lower total cost than if they tried to produce everything themselves. This leads to an increase in total output and efficiency for the global economy as a whole.