For what reason does total output in an economy increase when each person specializes?
A)Because there is much less competition for the same resources.
B)Because each person spends more time producing that product for which they have a comparative advantage.
C)Because a wider variety of products can be produced with specialization.
D)Because more people will be producing products than before.

Question

Quizplus · Accepted Answer

When each person specializes, they can produce more of a certain product by focusing their time and resources on it. This increased efficiency results in a higher total output in the economy.

For What Reason Does Total Output in an Economy Increase