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 when someone can produce something at a lower opportunity cost than someone else. For example, imagine two friends, Alex and Jamie. Alex is great at making sandwiches but not as good at baking cookies, while Jamie is a fantastic baker but struggles with making sandwiches. If Alex focuses on making sandwiches and Jamie bakes cookies, they can each specialize in what they do best, allowing them to trade and enjoy both sandwiches and cookies. This way, they both benefit more than if they tried to do both tasks themselves.
Detailed Explanation
When Country A makes cars and Country B makes textiles, they both do what they are best at. 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
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.