Why 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 in producing the product for which they have a comparative advantage, they become more efficient and productive in that area. This leads to an increase in the overall output of the economy. Specialization allows each person to focus on what they do best, leading to a more efficient use of resources and increased production.

Why Does Total Output in an Economy Increase When Each