Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Country A focuses on producing electronics while Country B focuses on producing toys.
B
Country A produces only wheat and does not trade with Country B.
C
Country A produces both wheat and cloth but trades only with Country C.
D
Country A imports cloth from Country B while exporting wheat.
Understanding the Answer
Let's break down why this is correct
Answer
If Country A specializes in producing wheat and Country B specializes in producing cloth, their trade relationship is similar to a situation where Country C specializes in a different product, like shoes. In this scenario, Country A can trade its wheat for cloth from Country B, while Country C can trade its shoes for either wheat or cloth, depending on its needs. This specialization allows each country to focus on what they do best, leading to more efficient production and better quality goods. So, the relationship A:B is similar to C:shoe, where both Country C and Country A are trading their specialized products with Country B. This shows how trade can benefit all countries involved by allowing them to enjoy a variety of goods without having to produce everything themselves.
Detailed Explanation
Country A trades wheat for cloth from Country B. Other options are incorrect because This option suggests both countries focus on different products; This option says Country A doesn't trade at all.
Key Concepts
Specialization
Comparative Advantage
Trade
Topic
Benefits of Specialization and Trade
Difficulty
easy level question
Cognitive Level
understand
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