An advantage of specialization is that it:
A)reduces interdependence.
B)leads to the exploitation of comparative advantage.
C)gives countries the ability to be self-sufficient.
D)discourages a capitalistic economic system.
E)encourages a closed economic system.

Question

Quizplus · Accepted Answer

Specialization allows countries to focus on producing goods and services in which they have a comparative advantage, meaning they can produce those goods and services at a lower opportunity cost than other countries. This leads to increased efficiency and productivity, as well as increased trade and economic growth. All of these benefits are advantages of specialization, and choice B specifically mentions the exploitation of comparative advantage. Choices A, C, D, and E are all incorrect because they do not accurately describe the advantages of specialization.

An Advantage of Specialization Is That It