Asked by
Matthew Restrepo
on Nov 17, 2024Verified
Total output in an economy increases when each person specializes because
A) there is less competition for the same resources.
B) each person spends more time producing that product in which he or she has a comparative advantage.
C) a wider variety of products will be produced within each country due to specialization.
D) government necessarily plays a larger role in the economy due to specialization.
Comparative Advantage
The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than its trading partners.
Total Output
Total output refers to the total value of all goods and services produced in an economy over a specific period.
Specialization
The process by which individuals or entities focus on producing a single or a few products or services, leading to increased efficiency and productivity in the economy.
- Recognize the potential for mutual benefits from trade between individuals or nations.
- Understand how trade can lead to an increase in overall economic efficiency and output.
Verified Answer
PH
Learning Objectives
- Recognize the potential for mutual benefits from trade between individuals or nations.
- Understand how trade can lead to an increase in overall economic efficiency and output.