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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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