Question

Select all the reasons that specialization is important within an economy.

Answer 1

Answer:

The answers are

A. it leads to increased productivity

B. it leads to improved quality of products

D. it leads to increased trade

Explanation:

Answer 2

Answer:

it leads to increased productivity

it leads to improved quality of products

it leads to higher prices

Explanation:

Specialization is the process by which people, products and services focus and narrow down the knowledge and activities that they can perform, this increases the quality of the work they perform and the quality of the products, while at the same time leading to higher prices. Take as an example doctors, a general doctor charges you less than a specialist.