Suppose Mexico Has a Comparative Advantage Relative to the United

question 281

Multiple Choice

Suppose Mexico has a comparative advantage relative to the United States in the manufacture of clothing and the United States has a comparative advantage in producing agricultural products. Which of the following is most likely to occur?

• A) Mexico and the United States will not trade agricultural products or clothing.
• B) Mexico will sell clothing to the United States and the United States will sell agricultural products to Mexico.
• C) Mexico will sell agricultural products to the United States and Mexico will buy clothing from the United States.
• D) Mexico will sell clothing to the United States but not buy any agricultural products from the United States.

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Definitions:

Overreacts

To react to a situation with an emotional or forceful response that is disproportional to the event or information at hand.

Lantus and Lente Insulin

Lantus is a long-acting insulin used for diabetes management, while Lente insulin (no longer widely used) was an intermediate-acting insulin.

Rapid-Acting Insulin

Insulin that starts to work very quickly, within minutes, to lower blood sugar levels, used primarily to manage blood sugar levels during meals.

Clear Insulin

A type of insulin that is transparent and fast-acting, used for controlling blood sugar levels in individuals with diabetes.