Refer to the Information Provided in Figure 20

question 148

Multiple Choice

Refer to the information provided in Figure 20.2 below to answer the question(s) that follow. Figure 20.2
-Refer to Figure 20.2. the theory of comparative advantage suggests that

• A) England should export trucks and import cars.
• B) England should export both trucks and cars.
• C) the United States should export both trucks and cars.
• D) the United States should import cars and export trucks.

---

Definitions:

MU/P Ratio

The ratio of marginal utility (the additional satisfaction from consuming one more unit of a good) to its price, often used in consumer choice theory to maximize utility.

MU/P Ratio

A term not widely recognized or may be misinterpreted without context; likely refers to the marginal utility to price ratio, assessing the consumer satisfaction per unit of currency spent.

Utility Maximization

An economic principle where individuals or institutions make choices to achieve the highest satisfaction or benefit from their resources.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.