Which of the Following Does Not Explain Why Specialization Increases

question 6

Multiple Choice

Which of the following does not explain why specialization increases output?

• A) Specialization capitalizes on differences in ability.
• B) Specialization promotes self-sufficiency and independence.
• C) Specialization fosters learning by doing.
• D) Specialization saves time by eliminating shifting between tasks.

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Definitions:

Real GDP

Real Gross Domestic Product measures a country's economic output adjusted for price changes, such as inflation or deflation, to reflect the true value of goods and services produced.

Recession

A phase of short-term economic downturn where business activities and manufacturing diminish, usually signaled by two successive quarters of GDP decrease.

Nominal GDP

Measures a country's gross domestic product using current prices, without adjusting for inflation or deflation, providing a raw economic output figure.

Real GDP Per Person

A measure of the economic output of a country adjusted for price changes (inflation or deflation) and divided by the total population.