📚 Learning Guide
Benefits of Specialization and Trade
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What is one major benefit of specialization in trade?

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Learning Path

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Choose the Best Answer

A

Increased efficiency and productivity

B

Decreased competition among businesses

C

Higher prices for goods

D

Limited variety of products

Understanding the Answer

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Answer

One major benefit of specialization in trade is that it allows countries to produce goods more efficiently. When a country focuses on making one type of product, it can use its resources, skills, and technology to improve the quality and quantity of that product. For example, if a country specializes in making cars, it can become very good at it, lowering costs and increasing production speed. This efficiency not only helps the country but also allows it to trade with others for different goods it needs, making everyone better off. Overall, specialization helps maximize productivity and encourages trade, benefiting all involved.

Detailed Explanation

When people or countries focus on making one thing, they get really good at it. Other options are incorrect because Some might think that specialization means fewer businesses competing; It's a common belief that specialization raises prices.

Key Concepts

trade
Topic

Benefits of Specialization and Trade

Difficulty

easy level question

Cognitive Level

understand

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