Question

In the real​ world, specialization is not complete. Why do countries not completely​ specialize? A. Because production of most goods involves increasing opportunity costs. B. Because tastes for products differ. C. Because not all goods are traded internationally. D. All of the above.

Answer 1

Answer:

The best answer to the question: In the real world, specialization is not complete. Why do countries not completely specialize? Would be, D: All of the above.

Explanation:

Specialization in the production of a good, or a service, or both, in the part of countries means that they will dedicate all their efforts exclusively to that good, service, or both. However, in reality, doing such a thing is not practical for any country. First, because customers are as varied as there are products and services, and they will choose to acquire varied products, and services. This means that countries will benefit more from offering varying goods and services, than from specializing. Also, not everything that might be specifically produced can be traded internationally and by not specializing a country increases its chances of having its goods and services traded. And lastly, because production of most goods, and services, involves increasing opportunity costs. This is why the answer is D, because all of the other options are part of the reason why.