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4. Specialization and trade increase total world

A. dependence.
B. output.
C. protection.
D. scarcity.

User Massanishi
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Final answer:

Specialization and trade lead to increased worldwide b. output because countries focus on producing goods where they have a comparative advantage. This results in production efficiency, economies of scale, and overall growth in the quantity produced.

Step-by-step explanation:

Specialization and trade are known to increase total world output by focusing production on areas where countries have a comparative advantage. The theory, as proposed by David Ricardo, suggests that when each country engages in specialization, they produce goods more efficiently and in larger quantities, which leads to an increase in global output. This can be illustrated by comparing outputs from tables where full specialization based on comparative advantage is applied versus outputs where no specialization occurs. Moreover, economies of scale also play a significant role in reducing the average cost of production and further increasing output.

User Mohsen Abdollahi
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