Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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