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Question 3 of 10 Specialization can help a country's economy by: A. increasing the cost of its voluntary exchanges. B. increasing its level of self-sufficiency. C. reducing the level of division in its labor force. D. reducing its overall opportunity costs.

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Question 3 of 10
Specialization can help a country's economy by:
A. increasing the cost of its voluntary exchanges.
B. increasing its level of self-sufficiency.
C. reducing the level of division in its labor force.
D. reducing its overall opportunity costs.

Question 3 of 10 Specialization can help a country's economy by: A. increasing the cost of its voluntary exchanges. B. increasing its level of self-sufficiency. C. reducing the level of division in its labor force. D. reducing its overall opportunity costs.

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KaiElite · Tutor for 8 years

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### D. Reducing its overall opportunity costs.

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## Step 1: Understand the concept of specialization<br />### Specialization refers to the practice of focusing on a limited scope of production to gain greater efficiencies and advantages.<br /><br />## Step 2: Identify how specialization impacts the economy<br />### Specialization often leads to economies of scale, where the cost per unit decreases as production increases, thus reducing overall opportunity costs.<br /><br />## Step 3: Evaluate the provided options<br />### Analyze each option in the context of specialization and economic impact:<br />- A. Increasing the cost of its voluntary exchanges: Incorrect, specialization typically lowers costs.<br />- B. Increasing its level of self-sufficiency: Incorrect, specialization leads to reliance on trade.<br />- C. Reducing the level of division in its labor force: Incorrect, specialization increases division of labor.<br />- D. Reducing its overall opportunity costs: Correct, specialization improves efficiency and reduces opportunity costs.
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