How does diverse society effects the economy?

Question

I want to know how does diverse society effects the economy?
Thank You!

Answer 1

Diversity means that there is more to gain from trade between individuals. If individuals are diverse, they will each have clearer comparative advantages. One person is more likely to be clearly better at growing food, another more likely to be clearly better at fixing cars etc. Also, different tastes will mean that the goods that each individual wants to consume will be different, so some people will buy lots of bananas, while others will buy lots of apples. This will lead to more trade than if everyone is equally able to do everything and wants the same goods.