Read each question and choose the best answer.

Question

Which of the following describes the benefits of specialization in a free market?
A. Specialization leads to higher prices.
B. Specialization leads to decreased competition among producers.
C. Specialization leads to lower overall output.
D. Specialization leads to efficient use of capital, land, and labor.

Answer 1

The best answer is:

D. Specialization leads to efficient use of capital, land, and labor.