Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A → B → C → D
B
B → A → D → C
C
C → D → A → B
D
D → C → B → A
Understanding the Answer
Let's break down why this is correct
Answer
The process of specialization and trade between countries A and B begins with country A specializing in wheat production because it can produce wheat more efficiently than cloth. Meanwhile, country B focuses on cloth production since it has a comparative advantage in making cloth. After both countries have specialized in what they do best, they trade wheat for cloth, allowing each to access products they need without having to produce everything themselves. This trade leads to lower opportunity costs, meaning that both countries can enjoy more goods than if they tried to produce everything on their own. For example, if country A trades 10 tons of wheat for 5 pieces of cloth, both countries end up with more of what they want than if they had not specialized and traded.
Detailed Explanation
Country A should focus on making wheat, while Country B makes cloth. Other options are incorrect because This option suggests that Country B starts first, which is not correct; This option starts with trade, but trade happens after specialization.
Key Concepts
Comparative Advantage
Specialization
International Trade
Topic
Benefits of Specialization and Trade
Difficulty
medium level question
Cognitive Level
understand
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