What answer choice describes economic specialization?
A.
An economy in which the government controls the means of production.
B.
An economy in which all economic barriers to trade have been eliminated.
C.
An economy in which producers produce the goods they can create most efficiently and trade for others.
D.
An economy in which producers look to the past in order to answer the three basic economic questions.
C. An economy in which producers produce the goods they can create most efficiently and trade for others.
Israel has few mineral resources and agriculture is difficult in the region due to water scarcity. How does Israel maintain a high standard of living?
A.
by specializing in low-skilled industries
B.
by specializing in high technology and service industries
C.
by creating barriers to trade to lessen the impact of foreign competition
D.
by creating alliances with neighboring countries to ensure access to resources
B. By specializing in high technology and service industries
The answer choice that describes economic specialization is C. In an economy with economic specialization, producers focus on producing the goods or services they can create most efficiently and effectively, and then they trade for other goods or services that they need. This concept is based on the idea that individuals, businesses, or regions have different resources, skills, and comparative advantages, so they specialize in producing what they are most efficient at, and then engage in trade to obtain other goods or services that they need.
To arrive at this answer, you would need to understand the concept of economic specialization and be able to identify the key characteristics of an economy that engages in economic specialization.