📚 Learning Guide
Production Advantage
hard

Arrange the following concepts in the correct order to demonstrate how a country can leverage its production advantages for economic growth: A) Specialization in goods with comparative advantage B) Understanding opportunity costs C) Increased trade with other countries D) Efficient resource allocation

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Learning Path

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Choose the Best Answer

A

B → A → D → C

B

A → B → C → D

C

D → A → B → C

D

C → D → A → B

Understanding the Answer

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Answer

To grow economically, a country first looks at what it can produce most efficiently and learns the trade‑offs involved, which is understanding opportunity costs. Next, it focuses on the goods where it has a comparative advantage and specializes in those. With that knowledge, it allocates its resources—like labor and capital—to those specialized areas, making production more efficient. Finally, by exporting these goods, it increases trade with other countries, which fuels further growth. This sequence shows how production advantages can drive a country’s economic rise.

Detailed Explanation

First, a country must weigh opportunity costs (what it sacrifices) to see where it can produce goods cheaper than others, its comparative advantage. Other options are incorrect because The mistake is thinking to specialize before knowing costs; This order assumes efficient allocation comes before finding advantage.

Key Concepts

Production Advantage
Comparative Advantage
Trade Economics
Topic

Production Advantage

Difficulty

hard level question

Cognitive Level

understand

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