Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A country that produces only wheat regardless of other resources
B
A country that specializes in producing goods where it has the lowest opportunity cost
C
A country that equally distributes its resources across various industries
D
A country that imports all its goods instead of producing them
Understanding the Answer
Let's break down why this is correct
Answer
Comparative advantage is the idea that different people or countries can produce certain goods or services more efficiently than others. This means that even if one person is better at everything, they should focus on what they do best while others do the same. For example, imagine two friends: one is great at baking cookies and the other is excellent at painting. If the cookie baker spends all their time baking and the painter focuses on creating beautiful art, they can trade cookies for paintings, and both end up with more of what they want. This way, they both benefit, showing how specialization based on comparative advantage can lead to greater overall efficiency and satisfaction.
Detailed Explanation
This option shows that a country should focus on making things it can produce most easily. Other options are incorrect because This option suggests a country only makes one thing; This choice implies spreading resources too thin.
Key Concepts
specialization
Topic
Understanding Comparative Advantage
Difficulty
easy level question
Cognitive Level
understand
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