A greater specialization of labour leads to which of the following major results?
A)the circular flow of income contracts
B)the overall output of the economy declines
C)each worker must become more self- sufficient
D)there is an increased need for government to intervene in the marketplace
E)there is a greater need for trade

Question

Quizplus · Accepted Answer

A greater specialization of labour leads to a greater need for trade, as firms and individuals are able to produce only a narrow range of goods or services. By specializing in certain tasks, workers and firms can produce more efficiently and effectively, but will need to trade with others to obtain the goods and services they cannot produce themselves.

A Greater Specialization of Labour Leads to Which of the Following