Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Country A produces both cars and computers more efficiently than Country B.
B
Country A specializes in computer production while Country B focuses on car manufacturing, leading to increased overall output.
C
Both countries produce the same amount of cars and computers.
D
Country A shifts resources from car manufacturing to computer production without any increase in overall efficiency.
Understanding the Answer
Let's break down why this is correct
Answer
Comparative advantage is the idea that individuals or countries should focus on producing goods or services they can create most efficiently, while trading for what others produce better. For example, imagine two friends, Alice and Bob. Alice is great at baking cookies, and Bob is excellent at painting. Instead of both trying to do both tasks, Alice should bake cookies while Bob paints. By doing what they do best, they can trade cookies for paintings, benefiting both of them and using their time and resources more effectively.
Detailed Explanation
When Country A makes computers and Country B makes cars, they both do what they are best at. Other options are incorrect because This option suggests that one country is better at everything; If both countries make the same amount, they are not using their strengths.
Key Concepts
resource allocation
Topic
Comparative Advantage Analysis
Difficulty
easy level question
Cognitive Level
understand
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