Economies organize according to the principle of specialization and exchange because doing so A. enables the government to exercise greater control than would otherwise be possible B. forces people to work longer hours than they would do normally C. eliminates the "law of increasing opportunity costs" D. enables workers to move up to management in the least amount of time E. enables greater production to be realized than would otherwise be possible

Question

Cameron Dorsey

Business

18 February, 04:46

Economies organize according to the principle of specialization and exchange because doing so A. enables the government to exercise greater control than would otherwise be possible B. forces people to work longer hours than they would do normally C. eliminates the "law of increasing opportunity costs" D. enables workers to move up to management in the least amount of time E. enables greater production to be realized than would otherwise be possible

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Answers (1)

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Ozzie · Answer 1

The correct answer is D, it ensures greater production to be realized than would otherwise be possible.

Explanation:

Specialization and exchange ensure that an economy devotes itself to producing goods or services that it has lower domestic opportunity costs compared to domestic opportunity costs of other nations and buys from others those goods or services it has higher domestic opportunity costs compared to others.

Option C is wrong as specialization and exchange do not eliminate opportunity costs, they only reduce them to the minimum possible.