Why don't countries specialize in the production of just a few goods for which they have a comparative advantage? a. In most cases, increasing opportunity costs would accompany the continually increasing production of a product specialist. b. In most cases, resource drains would accompany the continually increasing production of a product specialist. c. Doing so would limit innovation in other industries. d. Doing so would limit innovation in the core industries, because there would be little incentive for it.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter2: Economics: Eight Powerful Ideas
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Why don't countries specialize in the production
of just a few goods for which they have a
comparative advantage? a. In most cases,
increasing opportunity costs would accompany
the continually increasing production of a
product specialist. b. In most cases, resource
drains would accompany the continually
increasing production of a product specialist. c.
Doing so would limit innovation in other
industries. d. Doing so would limit innovation in
the core industries, because there would be little
incentive for it.
Transcribed Image Text:Why don't countries specialize in the production of just a few goods for which they have a comparative advantage? a. In most cases, increasing opportunity costs would accompany the continually increasing production of a product specialist. b. In most cases, resource drains would accompany the continually increasing production of a product specialist. c. Doing so would limit innovation in other industries. d. Doing so would limit innovation in the core industries, because there would be little incentive for it.
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