Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Cocoa
B
Cars
C
Wheat
D
Electronics
Understanding the Answer
Let's break down why this is correct
Answer
If Country A has an absolute advantage in producing cars, it means that Country A can produce more cars than Country B using the same resources. On the other hand, Country B has a comparative advantage in producing cocoa, which means that it can produce cocoa at a lower opportunity cost compared to cars. This means that while Country A focuses on making cars, Country B should focus on cocoa because it can produce it more efficiently. So, if we say Country A is to cars, then Country B is to cocoa. This relationship shows how different countries can benefit from specializing in what they do best and trading with each other.
Detailed Explanation
Country B is best at making cocoa, just like Country A is best at making cars. Other options are incorrect because This option confuses the idea of who is best at what; Wheat is not mentioned in the question.
Key Concepts
Absolute Advantage
Comparative Advantage
International Trade
Topic
Comparative and Absolute Advantage
Difficulty
easy level question
Cognitive Level
understand
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