10
QuizMultiple Choice

International Trade

Question 10 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

How does specialization enable countries to trade with one another?

Answer
A
A country can make and sell goods affordably and buy goods that it is inefficient at making.
B
A country can make what it chooses and sell its goods to other countries.
C
A country can decide to buy everything it needs from other countries.
D
A country can efficiently make goods that were once difficult to make.

Explanation

Specialization means a country focuses on producing goods it can make relatively efficiently. It can sell those goods to other countries and use the income to buy goods that would be more costly or difficult for it to produce itself. This is why the best choice is “A country can make and sell goods affordably and buy goods that it is inefficient at making.”

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