What is one major result of two countries choosing to specialize in the

production of different goods?

A. Each country is more likely to pay high opportunity costs for

production

B. Each country is more likely to trade for the goods the other

produces.

C. Each country is more likely to become economically self-

sufficient.

D. Each country is more likely to experience a decling in voluntary

exchange.

Countries become better at making the product they specialize in. Consumer benefits: Specialization means that the opportunity cost of production is lower, which means that globally more goods are produced and prices are lower. Consumers benefit from these lower prices and greater quantities of goods.

What are two reasons for country specialization?

Countries specialize so that opportunity costs can be increased. Countries specialize to excel in the production of specific goods and services. Countries specialize to make the most efficient use of their unique set of resources.

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