Question

Which problem will a country that tries to create a self-sufficient economy
most likely experience?
A. The country will become too dependent on voluntary exchange
with other countries.
B. The country will have to create a division of labor for all workers
within its borders.
C. The country will reduce its opportunity costs for selling goods to
other countries.
D. The country will be less efficient than if it specialized in a smaller
number of products.

Answer 1

Answer: D

Explanation: I just took the test

Answer 2

The Correct Answer is: D The country will be less efficient than if it specialized in a smaller number of products.

• When the Specialization Leads to Economies of Scale As labor is divided amongst workers, also that the workers can focus on a few or even one task.
• Which is more effective and efficient when The more they focus on one task, the more efficient they become at this task, which means that is less time and also that less money is involved in producing a good.
• When The International trade is the exchange of capital, goods, and services across international borders or territories.
• Thus, The Trading partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and  also then engages in trade for other products.

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