Which term is used to refer to a country focusing on producing a relatively small number of goods or services based on what the country can produce most efficiently?

A.
opportunity cost

B.
competition

C.
specialization

D.
entrepreneurship

C. specialization

The term used to refer to a country focusing on producing a relatively small number of goods or services based on what the country can produce most efficiently is C. specialization.

To understand why specialization is the correct term, we can break down the options and analyze them individually:

A. Opportunity cost: Opportunity cost refers to the value of the next best alternative forgone when making a decision. While opportunity cost plays a role in economic decision-making, it does not specifically relate to a country focusing on producing a small number of goods or services.

B. Competition: Competition refers to the rivalry between firms or actors in a market, striving to gain an advantage. Although competition influences the production and availability of goods and services, it does not specifically describe a country's focus on producing a limited range of goods.

D. Entrepreneurship: Entrepreneurship refers to the process of initiating, organizing, and managing a business venture. While entrepreneurship is essential for economic growth, it does not pertain specifically to a country's production focus.

Therefore, the most suitable term that describes a country focusing on producing a relatively small number of goods or services based on efficiency is C. specialization. Country specialization involves identifying and exploiting comparative advantages to produce specific goods or services more efficiently than other countries. By specializing, countries can enhance productivity and overall economic performance.