What economic concept emphasizes focusing resources on one or a few goods?

The correct answer is specialization, which is a crucial economic concept that refers to the practice of concentrating the production of goods or services on a limited range of products. This focus allows individuals, companies, or nations to enhance efficiency, improve skills, and increase overall productivity. By specializing, resources such as labor and capital can be used more effectively, enabling producers to create a higher quality product at a reduced cost.

For example, a farmer who specializes in growing a single crop, such as wheat, can invest more time and resources into cultivating that crop, leading to greater expertise and higher yields compared to a farmer who divides their attention among several different crops. Specialization can lead to increased innovation and improvements in techniques, ultimately benefiting consumers through lower prices and better products.

In contrast, diversification refers to spreading resources across a variety of goods or services, which can mitigate risk but may not achieve the same efficiency as specialization. Bulk buying pertains to purchasing large quantities of goods, often to secure a lower price, but does not involve the focused production aspect. Vertical integration is about consolidating control over various stages of production and supply chains rather than concentrating on a limited range of goods. Thus, specialization stands out as the concept directly related to focusing resources effectively on fewer products.