A country that is able to produce many goods should specialize in those products

Question

Quizplus · Accepted Answer

A country should specialize in producing goods in which it has a comparative advantage, meaning it can produce them at a lower opportunity cost compared to other countries. This will lead to increased efficiency and lower costs of production, making the country more competitive in the global market. Specializing in products in which a country has an absolute advantage (i.e., can produce more efficiently than any other country) may not always be the most efficient or profitable choice. Producing goods that are in high demand on the world market or that citizens are willing to pay the most for may also not be the most feasible or efficient choice for the country's resources and capabilities. Finally, producing goods that a country needs the most may not always align with what is most economically advantageous for the country.

A Country That Is Able to Produce Many Goods Should