True or False: Specialization discourages trade because items are less expensive. (1 point)
Responses
True
True
False
False
False
False
Explanation: Specialization actually encourages trade because it allows individuals, businesses, and countries to focus on producing goods and services in which they have a comparative advantage. This leads to increased efficiency and productivity, which can result in lower costs and prices for consumers.
False
Explanation:
Specialization actually encourages trade because it allows individuals, regions, and countries to focus on producing goods and services in which they have a comparative advantage. This means that they can produce those goods more efficiently and at a lower cost. By specializing in certain products, they can then trade with others who specialize in different products, leading to a more efficient allocation of resources and a wider range of goods and services available for consumers.
The statement that "specialization discourages trade because items are less expensive" is incorrect. In fact, specialization enhances trade by increasing productivity and efficiency, leading to lower production costs and potentially lower prices for consumers.