Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Countries should produce everything they need to ensure complete self-sufficiency.
B
Specialization allows countries to focus on the production of goods where they have a comparative advantage, increasing overall productivity.
C
Trade between countries is unnecessary if each country can produce all goods.
D
Comparative advantage results in lower quality products, reducing overall productivity.
Understanding the Answer
Let's break down why this is correct
Answer
Comparative advantage is the idea that different people or countries can produce certain goods or services more efficiently than others. This means that if everyone focuses on what they do best, the overall productivity of the economy increases. For example, if one country is great at making cars and another is better at growing rice, it makes sense for the car-making country to specialize in cars while the rice-growing country focuses on rice. When they trade, both countries can enjoy more cars and rice than if they tried to make both on their own. This specialization and trade lead to a more efficient use of resources, boosting productivity for everyone involved.
Detailed Explanation
When countries specialize in what they do best, they can make more goods efficiently. Other options are incorrect because Some people think countries should make everything themselves; This idea suggests that trade is not needed.
Key Concepts
comparative advantage
productivity
Topic
Benefits of Specialization and Trade
Difficulty
medium level question
Cognitive Level
understand
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