Suppose England Has a Comparative Advantage Over the United States

question 122

Multiple Choice

Suppose England has a comparative advantage over the United States at producing tea. If this is true, then:

• A) England should produce more tea than it wants and sell the rest to the United States.
• B) England should produce a small amount of tea and buy the rest of the tea it wants from the United States.
• C) England should buy all of the tea it wants from the United States.
• D) the United States has nothing to gain from buying tea produced by England.

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