Asked by Marie Monville on Jun 30, 2024
Verified
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.
Verified Answer
Learning Objectives
- Realize the importance of specialization and how it affects productivity.
Related questions
Each Point on a Production Possibilities Frontier Requires Full Employment ...
Productivity Can Be Improved by ...
A Cleaning Company Uses 10 Lbs Each of Chemicals A ...
In Some Cases, Specialization Allows Larger Factories to Produce Goods ...
Adam Smith's Example of the Pin Factory Demonstrates That Economies ...