Which of the Following Is Not a Reason Why Specialization

question 38

Multiple Choice

Which of the following is not a reason why specialization and trade are beneficial to society?

• A)The total output of economic goods may be increased even without any increase in resources.
• B)Scarce resources are utilized more efficiently by exploiting differences among them.
• C)Specialization fosters learning by doing, thus lowering the unit-costs of products.
• D)Firms and workers become less dependent on others for producing goods and services.

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Definitions:

Equilibrium GDP

The level of Gross Domestic Product at which aggregate supply equals aggregate demand, indicating a stable economy.

Full Employment GDP

Full Employment GDP is the output level produced by an economy when all its labor and resources are employed at their maximum efficiency.

Multiplier

refers to a factor by which an initial change in spending will ultimately change the total economic output more than the initial amount.

Multiplier

In economics, a factor by which an initial change in spending will alter total economic output due to follow-on effects.