Which concept is described as producing a narrower range of goods and services than you consume?

Which concept is described as producing a narrower range of goods and services than you consume?

• A. Surplus
• B. Tariff
• C. Specialization
• D. Supply

Answer: (C)

Specialization means focusing on producing a limited set of goods or services that you do best or can produce most efficiently, while you obtain a broader range of goods and services through trade. By concentrating resources on a narrower subset, you gain efficiency and output, and you rely on others to provide the rest you consume. This is exactly what it means to produce a narrower range than you consume. The other terms don’t fit: a surplus is extra production beyond demand, a tariff is a tax on imported goods, and supply is the total amount of a good available at different prices.

Specialization means focusing on producing a limited set of goods or services that you do best or can produce most efficiently, while you obtain a broader range of goods and services through trade. By concentrating resources on a narrower subset, you gain efficiency and output, and you rely on others to provide the rest you consume. This is exactly what it means to produce a narrower range than you consume. The other terms don’t fit: a surplus is extra production beyond demand, a tariff is a tax on imported goods, and supply is the total amount of a good available at different prices.