The figure below shows the potential gains from specialization for farms in Idaho and Iowa.

-Refer to the figure above.Under specialization,Idaho produces ________ and Iowa produces ________.

Question

The figure below shows the potential gains from specialization for farms in Idaho and Iowa.
 
-Refer to the figure above.Under specialization,Idaho produces ________ and Iowa produces ________.

Quizplus · Accepted Answer

Specialization in production is based on the principle of comparative advantage, where each region should produce the good for which it has a lower opportunity cost relative to the other. Without the specific figure, the correct answer cannot be determined based on comparative advantage principles alone. However, given the format of the question, it seems to imply that Idaho and Iowa specialize in different products, with Idaho likely specializing in alfalfa and Iowa in corn, based on typical agricultural strengths. Choice A suggests a specialization that aligns with what might be expected from these states' agricultural outputs, assuming Idaho has a comparative advantage in alfalfa and Iowa in corn.

The Figure Below Shows the Potential Gains from Specialization for Farms