Because of specialization and comparative advantage, most people
A)consume only what they produce themselves
B)consume the products produced by their family and friends
C)consume the products of many other specialists
D)do not use money as a medium of exchange
E)share whatever they produce

Question

Quizplus · Accepted Answer

Specialization and comparative advantage lead to interdependence in production and consumption. This means that most people consume products of many other specialists, rather than only what they produce themselves or from their family and friends. Through trade and exchange, people are able to obtain a variety of goods and services they do not produce themselves, and this is facilitated by the use of money as a medium of exchange.

Because of Specialization and Comparative Advantage, Most People