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:

Photosynthesis Equation

Represents the chemical process by which plants, algae, and some bacteria convert light energy into chemical energy, typically summarized as 6CO2 + 6H2O + light energy -> C6H12O6 + 6O2.

Photosynthesis

A process used by plants and other organisms to convert light energy, usually from the sun, into chemical energy that can be used to fuel the organism's activities.

Ecosystems

Complex communities of organisms and their physical environment interacting as an ecological unit in nature.

Food Chains

A hierarchy of organisms each dependent on the next as a source of food, illustrating the flow of energy and nutrients.