Which scenario can occur when specialization in tasks is coupled with trade?
A) It can lead to gains for all parties.
B) It leads to gains for one party and losses for the other parties.
C) It leads to losses for all parties.
D) It works only with government intervention.

Question

Quizplus · Accepted Answer

Specialization in tasks allows individuals or countries to focus on producing goods or services which they are comparatively better at producing. When this is coupled with trade, all parties can benefit through mutually advantageous exchange of goods and services. Each party can acquire goods and services that they could not efficiently produce, resulting in gains for all parties involved.

Which Scenario Can Occur When Specialization in Tasks Is Coupled