The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-If an economy exhibits the specialization of labour,we know that
A)each worker is self- sufficient.
B)most production is artisanal in nature.
C)job security is ensured.
D)a barter economy is more suitable.
E)different individuals are producing different products.

Question

The diagram below shows two production possibilities boundaries for Country X.
  FIGURE 1- 4
-If an economy exhibits the specialization of labour,we know that
A)each worker is self- sufficient. 
B)most production is artisanal in nature. 
C)job security is ensured. 
D)a barter economy is more suitable. 
E)different individuals are producing different products.

Quizplus · Accepted Answer

If an economy exhibits the specialization of labour, it means that different individuals are producing different products. This allows for greater efficiency as individuals become experts at their specific task and can produce more output in less time. The production possibilities boundary diagram in the question also supports this idea, as it shows the potential for increasing output by specializing in one good over the other. Therefore, option E is the best choice.

The Diagram Below Shows Two Production Possibilities Boundaries for Country