Question
What are the reasons that a country should specialize in a product and trade for other items? Choose all that apply.
Responses
A The country can produce more of the item than another country.The country can produce more of the item than another country.
B The country can produce an item more efficiently than another country. The country can produce an item more efficiently than another country.
C The country can produce an item at a lower opportunity cost than another country.The country can produce an item at a lower opportunity cost than another country.
D The country can produce an item at a greater opportunity cost than another countryThe country can produce an item at a greater opportunity cost than another country
E The country has a comparative advantage in producing the item over another country.
Responses
A The country can produce more of the item than another country.The country can produce more of the item than another country.
B The country can produce an item more efficiently than another country. The country can produce an item more efficiently than another country.
C The country can produce an item at a lower opportunity cost than another country.The country can produce an item at a lower opportunity cost than another country.
D The country can produce an item at a greater opportunity cost than another countryThe country can produce an item at a greater opportunity cost than another country
E The country has a comparative advantage in producing the item over another country.
Answers
GPT-4o mini
The reasons that a country should specialize in a product and trade for other items include the following:
A. The country can produce more of the item than another country.
B. The country can produce an item more efficiently than another country.
C. The country can produce an item at a lower opportunity cost than another country.
E. The country has a comparative advantage in producing the item over another country.
**D** is incorrect because producing an item at a greater opportunity cost would not be a reason to specialize in that item. Instead, countries should specialize in goods where they have the lowest opportunity cost relative to other countries.
A. The country can produce more of the item than another country.
B. The country can produce an item more efficiently than another country.
C. The country can produce an item at a lower opportunity cost than another country.
E. The country has a comparative advantage in producing the item over another country.
**D** is incorrect because producing an item at a greater opportunity cost would not be a reason to specialize in that item. Instead, countries should specialize in goods where they have the lowest opportunity cost relative to other countries.