📚 Learning Guide
Understanding Comparative Advantage
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Comparative Advantage:Absolute Advantage :: Specialization:?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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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