One of the Largest Categories of Exports from the United

question 27

Multiple Choice

One of the largest categories of exports from the United States is now pop culture: movies, music, TV programming, and videos. A direct conclusion from this information is that, compared to other countries, the United States has

• A) higher wages for producers of pop culture.
• B) lower wages for producers of pop culture.
• C) a comparative advantage in producing pop culture.
• D) an absolute advantage in producing pop culture.

---

Definitions:

Economy Moves

The various shifts and changes in the economic activities and conditions within an economy over time.

Supply

The total amount of a specific good or service that is available to consumers at a particular price over a given period.

Equilibrium Price

The price at which the quantity of a good supplied equals the quantity of the good demanded.

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity of goods demanded at the market price.