Learning Path
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Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
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Answer
When we talk about opportunity costs, we consider what each person gives up when they choose to focus on one task instead of another. If two individuals specialize in what they do best—meaning they have different strengths—they can work together to produce more goods than if they both tried to do everything. For example, if one person is really good at making bread and the other is great at making cheese, by specializing, they can create more bread and cheese together than if they both tried to make both. This is because they are using their time and skills more efficiently, leading to increased total production. Therefore, it's accurate to say that specialization based on comparative advantage generally leads to better outcomes, regardless of the specific opportunity costs involved.
Detailed Explanation
It's not always true that total production increases. Other options are incorrect because This answer suggests that specialization always leads to more production.
Key Concepts
Opportunity Costs
Comparative Advantage
Specialization
Topic
Calculating Opportunity Costs
Difficulty
hard level question
Cognitive Level
understand
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