What term describes producing a narrower range of goods and services than you consume?

What term describes producing a narrower range of goods and services than you consume?

• A. Division of Labor
• B. Specialization
• C. Globalization
• D. Interdependence

Answer: (B)

Specialization is focusing on producing a narrower range of goods and services than you consume. By concentrating on what you do best, you become more efficient, reduce costs, and improve quality. Because you don’t try to make everything yourself, you rely on others to supply the rest, which is why markets thrive on exchange and mutual reliance. Division of labor is related, since it’s a way to enact specialization within production, while globalization and interdependence describe broader cross-border connections and mutual reliance, not the specific idea of narrowing what you produce.

Specialization is focusing on producing a narrower range of goods and services than you consume. By concentrating on what you do best, you become more efficient, reduce costs, and improve quality. Because you don’t try to make everything yourself, you rely on others to supply the rest, which is why markets thrive on exchange and mutual reliance. Division of labor is related, since it’s a way to enact specialization within production, while globalization and interdependence describe broader cross-border connections and mutual reliance, not the specific idea of narrowing what you produce.