The land of Narnack has very infertile soil but a large supply of oil. What action should Narnack take? Narnack should
A) specialize in the production of crude oil and trade this for grain and other food products.
B) grow food anyway because its people will need it for survival.
C) focus on attracting tourists to its country and thus purchase the needed supplies of food.
D) specialize in the production of food products such as cereals and bread.
E) import oil to satisfy the country's need for gasoline.

Question

Quizplus · Accepted Answer

Narnack should specialize in the production of crude oil and trade it for grain and other food products. This way, they can use their abundant supply of oil to generate income, which they can then use to purchase the food they need for survival. Additionally, specializing in one product can help Narnack achieve economies of scale, which will lead to lower costs and increased profits.

The Land of Narnack Has Very Infertile Soil but a Large