Question

Which situation might cause a country to specialize?

bananas grown far from major transportation
seafood in an area with few fishing vessels
electronics in a city with few trained workers
wheat production in a region with fertile soil

Answer 1

Wheat production in a region with fertile soil.

Fertile soil gives that region a productive advantage (lower opportunity cost) in growing wheat, so it’s likely to specialize there. The other options describe disadvantages (high transport costs or lack of inputs/skills) that would discourage specialization.