Suppose the United States Has a Comparative Advantage Over Mexico

question 118

Multiple Choice

Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that

• A)in order to consume beyond its PPF, the United States should produce more pork than what it requires and export some of it to Mexico.
• B)in order to consume beyond its PPF, the United States should produce a moderate quantity of pork and import the remainder of what it requires from Mexico.
• C)in order to consume beyond its PPF, the United States should refrain altogether from producing pork and import all of what it requires from Mexico.
• D)Mexico has nothing to gain from importing United States pork.

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