Question

Which of the following describes the benefits of specialization in a free market?

A. Specialization leads to higher prices.
B. Specialization leads to decreased competition among producers.
C. Specialization leads to lower overall output.
D. Specialization leads to efficient use of capital, land, and labor.

Answer 1

Answer:

The benefits of specialization include a larger quantity of goods and services that can be produced, improved productivity, production beyond a nation's production possibility curve, and finally, resources that can be used more efficiently.