Which of the Following Is Not a Reason Why Specialization

question 65

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.

---

Definitions:

Variable Manufacturing Overhead

Costs in the production process that change with the volume of production, such as utility costs or raw materials.

Predetermined Overhead Rates

Estimated rates used to allocate overhead costs to products or activities, based on selected bases like labor hours or machine hours.

Machine-Hours

A unit measure representing the operating time of machinery, used in calculating production costs and allocating expenses based on machine usage.

Molding

The process of shaping a material by introducing it into a rigid frame called a mold.