Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Specialization allows countries to produce goods more efficiently.
B
Trade eliminates the need for countries to have a comparative advantage.
C
Countries can consume beyond their production possibilities frontier through trade.
D
Specialization leads to increased overall productivity in an economy.
E
Trade only benefits the exporting country.
Understanding the Answer
Let's break down why this is correct
Answer
Specialization and trade have important benefits that help economies grow and improve lives. When people or countries focus on what they do best, they can produce more goods or services efficiently. For example, if one country is great at making cars and another is skilled at growing coffee, they can trade cars for coffee, allowing both to enjoy what they each produce best. This not only increases the variety of products available but also helps lower costs, as each party can produce at a larger scale. Overall, specialization and trade lead to better use of resources and can improve the standard of living for everyone involved.
Detailed Explanation
None of the statements accurately describe the benefits of specialization and trade. Other options are incorrect because This suggests that specialization does not help countries make things better; This implies that trade is not related to having a comparative advantage, which is wrong.
Key Concepts
Comparative Advantage
Specialization
Trade Efficiency
Topic
Benefits of Specialization and Trade
Difficulty
medium level question
Cognitive Level
understand
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