For What Reason Does Total Output in an Economy Increase

question 173

Multiple Choice

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.

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Definitions:

Scientific Theories

Well-substantiated explanations of natural phenomena, derived from methodological research, observation, and experimentation, capable of predicting future occurrences.

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The process of thought in which ideas are distanced from objects.

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A German painter and printmaker, one of the key figures of the German Expressionist movement.