Multiple Choice
The principle of specialization and exchange implies that
A) total production is highest when individuals specialize according to their absolute advantages
B) productive inefficiency increases as producers in society specialize
C) exchange can only occur when there is specialization in the economy
D) gains from specialization will only occur when society is operating at a point along its production possibilities frontier
E) total production is highest when individuals specialize according to their comparative advantages
Correct Answer:
Verified
Correct Answer:
Verified
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