Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Electronics
B
Textiles
C
Agricultural products
D
Pharmaceuticals
Understanding the Answer
Let's break down why this is correct
Answer
If Country A can produce textiles more efficiently than Country B, it means Country A has a comparative advantage in textiles. This allows Country B to focus on producing goods where it is relatively better, or has a comparative advantage. For example, if Country B is better at producing electronics than textiles, it should specialize in electronics. By doing this, both countries can trade and benefit from each other's strengths. So, if A specializes in textiles, then B would be better off specializing in electronics.
Detailed Explanation
Country B should focus on making agricultural products. Other options are incorrect because Some might think electronics are a good choice; Choosing textiles seems logical, but Country A is better at that.
Key Concepts
Comparative Advantage
Opportunity Cost
International Trade
Topic
Comparative Advantage Analysis
Difficulty
easy level question
Cognitive Level
understand
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