Question

Because of specialization and comparative advantage, most people:_______

a. consume the products produced by their family and friends.
b. consume the products of many other specialists.
c. consume only what they produce themselves.
d. do not use money as a medium of exchange.
e. share whatever they produce

Answer 1

Answer:

B

Explanation:

A country (people) has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries (people).

According to economic theory, a person should specialise in the production of goods for which it has a comparative advantage.

If a person specialises only in the production of goods he specialises, he would not to buy other goods from specialists since she does not produce all the goods