Question
When an individual specializes to produce one good, and then acquires additional desired goods from other specialists, which of the following occurs?
Question 6 options:
neither party gains as specialization decreases efficiency.
neither party gains as specialization decreases productivity.
both parties gain as a result of fraudulent exchange.
both parties gain as a result of voluntary exchange.
Question 6 options:
neither party gains as specialization decreases efficiency.
neither party gains as specialization decreases productivity.
both parties gain as a result of fraudulent exchange.
both parties gain as a result of voluntary exchange.
Answers
GPT-4o mini
The correct answer is:
**both parties gain as a result of voluntary exchange.**
When individuals specialize in producing a particular good and then engage in trade with others who have also specialized, they can both benefit from the increased efficiency and productivity that specialization provides. This trade is typically voluntary and mutually beneficial, as it allows each party to acquire a variety of goods that they may not produce as efficiently on their own.
**both parties gain as a result of voluntary exchange.**
When individuals specialize in producing a particular good and then engage in trade with others who have also specialized, they can both benefit from the increased efficiency and productivity that specialization provides. This trade is typically voluntary and mutually beneficial, as it allows each party to acquire a variety of goods that they may not produce as efficiently on their own.