Country A has a climate well-suited for agriculture, but few energy resources. Country B is arid but has plentiful access to oil. Which situation will benefit both countries the most? A. Country A produces agricultural goods, Country B produces oil, and the countries engage in trade. B. Country A produces agricultural goods, Country B produces oil, and the countries do not engage in trade. C. Both countries produce agricultural goods and oil, and the countries do not engage in trade. D. Both countries produce agricultural goods and oil, and the countries engage in trade.

Answer 1

D. Both countries produce agricultural goods and oil, and the countries engage in trade. This way, Country A can benefit from Country B's oil resources, while Country B can benefit from Country A's agricultural products. Engaging in trade allows both countries to specialize in what they do best and exchange goods and services, leading to mutual economic prosperity.