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Specialization and Trade
Worksheet
Grade Level
Grade 4
4.49 Specialization and Trade
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🔴 Hard
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A country has absolute advantage in producing both paper and pens, but it still chooses to import pens after trade opens.
Which explanation best fits this choice?
A
Absolute advantage never leads to trade.
B
The country is required by law to import pens.
C
It is trying to make less paper on purpose.
D
Even with absolute advantage, the country may have higher opportunity cost for pens, so it specializes where it has comparative advantage and trades.
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