Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
C
Depends on market conditions
D
Only if cloth is cheaper than wheat
Understanding the Answer
Let's break down why this is correct
Answer
It's not true that Country A will never import cloth from Country B. Even though Country A is better at producing wheat and Country B is better at making cloth, both countries can benefit from trade. By specializing in what they do best, Country A can produce more wheat, while Country B can produce more cloth. Then, they can trade some of their goods, allowing each country to get what they need more efficiently. For example, if Country A trades wheat for cloth with Country B, both countries end up with more wheat and cloth than if they tried to produce both items themselves.
Detailed Explanation
Countries can benefit from trading even if one is better at making everything. Other options are incorrect because This suggests that trade can't happen at all; This implies that trade only happens based on market conditions.
Key Concepts
Comparative advantage
Specialization
Opportunity cost
Topic
Benefits of Specialization and Trade
Difficulty
hard level question
Cognitive Level
understand
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