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.

Question

Business

Chloe Weiss

9 October, 18:50

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.

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Answers (1)

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Makaila · Answer 1

The answer is: C) each person spends more time producing that product in which he or she has a comparative advantage.

Explanation:

If a person wants to specialize on something, they will spend more time doing the task they are expert in.

If a country (or an economy) specializes in products or services for which it holds a comparative advantage, they benefit from economies of scale. Their average cost of production declines as output increases. More