Refer to the information provided in Figure 33.2 below to answer the question(s) that follow. Figure 33.2
-Refer to Figure 33.2. the theory of comparative advantage suggests that
A) England should export trucks and import cars.
B) England should export both trucks and cars.
C) the United States should export both trucks and cars.
D) the United States should import cars and export trucks.

Question

Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.  Figure 33.2
-Refer to Figure 33.2. the theory of comparative advantage suggests that
A) England should export trucks and import cars. 
B) England should export both trucks and cars. 
C) the United States should export both trucks and cars. 
D) the United States should import cars and export trucks.

Quizplus · Accepted Answer

The theory of comparative advantage states that a country should specialize in producing and exporting goods that it can produce at a lower opportunity cost than other countries. In this scenario, England has a lower opportunity cost for producing trucks than the United States, while the United States has a lower opportunity cost for producing cars than England. Therefore, England should specialize in producing and exporting trucks, while importing cars from the United States.

Refer to the Information Provided in Figure 33