Multiple Choice Question
Which term is used to refer to a country focusing on producing a relatively small number of goods or services based on what the country can produce most efficiently?
A.
opportunity cost
B.
competition
C.
specialization
D.
entrepreneurship
C. specialization
The correct answer is C. specialization.
The correct answer is C. specialization.
Explanation:
To answer this question, we need to understand the concept of a country focusing on producing a relatively small number of goods or services based on what it can produce most efficiently. This concept is known as specialization.
To understand the term specialization, we can break it down into two key components:
1. Focusing on a small number of goods or services: Specialization involves narrowing down the range of goods or services that a country produces. Instead of trying to produce everything domestically, countries focus on a limited number of goods or services.
2. Producing what the country can produce most efficiently: Specialization is based on the idea that different countries have different resources, skills, and comparative advantages. A country chooses to specialize in producing the goods or services that it can produce most efficiently, taking into account factors such as availability of resources, labor force expertise, and technology.
By focusing on what they can produce most efficiently, countries can maximize their productivity, reduce costs, and gain a competitive advantage in international trade.
Therefore, the correct answer is C. specialization.