Exhibit 19-2

-In Exhibit 19-2, the United States should produce rice and trade its rice for Costa Rica's t-shirts.

Question

Exhibit 19-2
 
-In Exhibit 19-2, the United States should produce rice and trade its rice for Costa Rica's t-shirts.

Quizplus · Accepted Answer

According to the principle of comparative advantage, a country should specialize in producing and exporting the goods in which it has a lower opportunity cost compared to other countries. If the US has a comparative advantage in producing rice, it should produce and export rice, and trade it for goods that Costa Rica can produce more efficiently, such as t-shirts. Therefore, the US should produce rice and trade it for Costa Rica's t-shirts.

Exhibit 19-2 -In Exhibit 19-2, the United States Should Produce Rice and Should