Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Country A has a comparative advantage in wheat production, allowing it to produce wheat more efficiently than Country B.
B
Country A has a higher demand for wheat than Country B, which forces it to export.
C
Country B is unable to produce any wheat at all, making it reliant on imports.
D
Country A has a surplus of money, enabling it to buy wheat from Country B.
Understanding the Answer
Let's break down why this is correct
Answer
The trade arrangement between Country A and Country B is mainly based on the benefits of specialization. Country A focuses on producing wheat because it can do so more efficiently than Country B, meaning it can grow more wheat with less time and resources. By specializing, Country A can produce a surplus of wheat, which it then exports to Country B, allowing both countries to benefit. For example, if Country A can produce 100 tons of wheat while Country B can only produce 50 tons, Country A can sell its extra wheat to Country B, helping both countries get more wheat overall. This way, both countries make the most of their resources, leading to a more efficient and productive trade relationship.
Detailed Explanation
Country A can grow wheat better and faster than Country B. Other options are incorrect because This answer suggests that Country A needs more wheat than it can grow; This option implies that Country B can't grow any wheat at all.
Key Concepts
Comparative Advantage
Specialization
Trade Efficiency
Topic
Benefits of Specialization and Trade
Difficulty
medium level question
Cognitive Level
understand
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