A remote island community of 1,000 people has a small group of highly skilled boat builders. A new technique allows them to build twice as many boats per year using the same amount of resources. Despite this massive increase in productivity, the overall prosperity of the community shows little improvement after a year. Which statement best explains this phenomenon based on the relationship between production and the scope of trade?
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A remote island community of 1,000 people has a small group of highly skilled boat builders. A new technique allows them to build twice as many boats per year using the same amount of resources. Despite this massive increase in productivity, the overall prosperity of the community shows little improvement after a year. Which statement best explains this phenomenon based on the relationship between production and the scope of trade?
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