HISTORY
HISTORY OF THE MIDDLE EAST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Most countries can only make one product very well
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Specialization limits the amount of agriculture a country allows
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Specialization always keeps the prices low on goods that imported into a country
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Specialization allows people to do a more efficient job at producing what they make best and trade for the rest
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Detailed explanation-1: -Specialization can increase productivity and provide a comparative advantage for a firm or economy. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production.
Detailed explanation-2: -Economies of scale – Trade and specialisation result in the growth of fewer, bigger producers. Higher global GDP – If countries concentrate on the production of goods where they have comparative advantage, global output will be higher, resulting in increased living standards.
Detailed explanation-3: -Specialization in economics is the process of an organization concentrating its labor and resources on a certain type of production to be more efficient and create a comparative advantage for an economy.