Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Efficiency
B
Inefficiency
C
Trade
D
Production
Understanding the Answer
Let's break down why this is correct
Answer
Comparative advantage is the ability of a person or country to produce a good or service at a lower opportunity cost than others, while absolute advantage is when someone can produce more of a good or service with the same resources. Specialization is related to these concepts because it means focusing on one specific task or product to become more efficient. For example, if a farmer is really good at growing apples and another is better at growing oranges, they should each specialize in what they do best. By doing this, they can trade with each other and both benefit from having more fruit than if they tried to grow both. So, just like comparative advantage relates to how efficiently resources are used, specialization is about focusing efforts to maximize productivity.
Detailed Explanation
When people or countries focus on what they do best, they use their resources better. Other options are incorrect because Some might think that focusing on one thing makes you less effective; People might confuse specialization with trade.
Key Concepts
Comparative Advantage
Absolute Advantage
Specialization
Topic
Understanding Comparative Advantage
Difficulty
medium level question
Cognitive Level
understand
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