A country completely specializes in production when it spends all of its resources producing
A) a particular good.
B) the goods it has an absolute advantage at producing.
C) only what other countries need.
D) the goods it can make more of.

Question

Quizplus · Accepted Answer

Specialization occurs when a country focuses on producing a particular good or a set of goods in which it has a comparative advantage. By specializing, a country can increase its efficiency and productivity, leading to higher levels of output and greater economic growth. Therefore, A is the best answer as a country that completely specializes in production spends all of its resources producing a particular good.

A Country Completely Specializes in Production When It Spends All