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.
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 better understand this concept, let's break it down:
Specialization is the economic principle that suggests individuals, businesses, and countries are more productive when they focus on producing goods or services in which they have a comparative advantage or are most efficient at producing.
To determine what a country can produce most efficiently, it is necessary to consider various factors such as available resources, technology, labor force skills, and natural advantages. By identifying these advantages and specializing in the production of particular goods or services, a country can achieve higher productivity, lower costs, and ultimately economic growth.
By specializing, countries can also participate in international trade, where they can export their specialized products and import goods or services in which they are less efficient. This benefits both the home country and its trading partners by allowing each to focus on their respective areas of comparative advantage.
Therefore, the correct 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 specialization (option C).