📚 Learning Guide
Specialization and Trade
easy

Why might a country choose to specialize in a certain good and trade for others?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

To maximize economic efficiency and welfare

B

To become self-sufficient in all goods

C

To eliminate trade altogether

D

To reduce competition among domestic producers

Understanding the Answer

Let's break down why this is correct

Answer

A country may specialize in a good that it can produce most efficiently, so it uses its resources—like skilled workers or good technology—to make that good better than other countries. By focusing on this product, the country saves time and money, making the good cheaper and higher quality. It can then trade the surplus to other nations that need that good, while buying goods it cannot produce as well. For example, Japan focuses on high‑tech cars and trades them for coffee beans that it cannot grow cheaply. This way, everyone gets more goods than they could produce alone.

Detailed Explanation

Specializing lets a country focus on the products it can make most efficiently. Other options are incorrect because The idea that specialization means making everything on its own is a mix‑up; Cutting out trade would stop the benefits of specialization.

Key Concepts

Comparative Advantage
Economic Efficiency
Trade Benefits
Topic

Specialization and Trade

Difficulty

easy level question

Cognitive Level

understand

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