Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Country A can produce both cars and textiles more efficiently than Country B.
B
Country A specializes in car production while Country B specializes in textiles, leading to greater overall efficiency.
C
Both countries produce the same amount of goods regardless of specialization.
D
Country A decides to stop producing textiles completely.
Understanding the Answer
Let's break down why this is correct
Answer
Comparative advantage is the idea that countries or individuals should specialize in producing goods or services that they can make more efficiently than others. For example, imagine two friends, Alice and Bob. Alice is really good at baking cookies, while Bob is great at mowing lawns. If Alice focuses on baking cookies and Bob mows lawns, they can trade cookies for lawn care, making both of them better off than if they tried to do both tasks themselves. This shows that by specializing in what each does best, they can use their time and resources more effectively.
Detailed Explanation
This option shows how two countries can work together. Other options are incorrect because This option suggests that one country is better at everything; This option shows both countries making the same amount.
Key Concepts
opportunity cost
Topic
Understanding Comparative Advantage
Difficulty
easy level question
Cognitive Level
understand
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