Question

Which statement correctly describes one feature of specialization? 1. Specialization encourages a wise use of resources by choosing to focus on the production of specific goods. 2. Most countries do not opt for specialization because they lack the resources for it. 3. Specialization is easy to achieve because countries do not need to invest any labor or capital. 4. Countries can only specialize in goods; they cannot specialize in services such as teaching or engineering.

Answer 1

1. Specialization encourages a wise use of resources by choosing to focus on the production of specific goods

Specialization is a macroeconomic issue, where Individuals and entities are required to or acquire specialized capabilities (or both acquire and require) in combinations or trade in order to take advantage of the capabilities of others in addition to their own.