What can increased output from specialisation lead to for a country's economy?

Increased output from specialization can lead to increased tax revenue for public services because specialization enhances productivity. When workers or businesses focus on specific tasks or industries in which they have a comparative advantage, they tend to produce goods and services more efficiently. This efficiency can result in higher levels of output, which means that businesses may generate more profits. As businesses grow and profits increase, they contribute more in taxes to the government. These tax revenues can then be used to fund essential public services such as education, healthcare, and infrastructure, which in turn can benefit the economy further.

The other options do not align well with the effects of increased output from specialization. Higher unemployment rates tend to be associated with economic downturns, not specialization. Increased dependency on imports may occur in some scenarios but is not a direct benefit of specialization; rather, specialization can also promote export growth. Lastly, less foreign investment is typically not a result of increased specialization; instead, successful specialization can attract more foreign investment as businesses seek to capitalize on a well-developed market.