Explain how economies benefit from specialization and exchange.
Economics is not my strong suit. If there is a way to explain this to me in laymans terms along with an example; that would help me wrap my brain around this topic.© BrainMass Inc. brainmass.com October 10, 2019, 5:09 am ad1c9bdddf
Economies benefit from specialization and exchange in a few different ways. When businesses specialize, it adds variety to the economy and it therefore raises capital. Think of an economy where all producers in the economy are producing goods that are relatively the same. We have no specialization, and all exchange that takes place is relatively generic because there is no real product ...
The solution explains how economies benefit from specialization and exchange.