Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Countries should produce goods they can make most efficiently compared to others.
B
Countries should only produce goods that they can produce at the lowest cost.
C
Comparative advantage means that countries should not engage in trade.
D
All countries have the same comparative advantages in all goods.
Understanding the Answer
Let's break down why this is correct
Answer
Comparative advantage is an important idea in international trade that explains how countries can benefit from trading with each other. It means that a country should focus on producing goods or services that it can make more efficiently than others, even if it can make everything. For example, if Country A is really good at making cars but not as good at making clothes, while Country B is better at making clothes but not as good at making cars, it makes sense for Country A to focus on cars and Country B on clothes. By doing this, both countries can trade and get more of what they want than if they tried to make everything themselves. This way, they both benefit and can enjoy a wider variety of products.
Detailed Explanation
This statement is true because countries should focus on making things they can produce better than others. Other options are incorrect because This idea is too narrow; This is incorrect because trade is important.
Key Concepts
trade benefits
Topic
Comparative Advantage Analysis
Difficulty
easy level question
Cognitive Level
understand
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