The United States is capable of producing many goods and services that it imports,but it does not because
A)We produce those goods more cheaply if we make them ourselves.
B)We can import those goods at a lower opportunity cost than if we make them ourselves.
C)We can export goods that we specialize in.
D)We have lost those skilled workers.

Question

Quizplus · Accepted Answer

The reason why the United States imports goods that it could produce domestically is because it can import those goods at a lower opportunity cost than if it were to produce them itself. This means that by importing the goods, the United States can use its resources more efficiently to produce other goods and services that it specializes in and can export to other countries. It is not necessarily because we produce those goods more cheaply if we make them ourselves, we have lost skilled workers or we can export goods that we specialize in (although these factors may also play a role in certain cases).

The United States Is Capable of Producing Many Goods and Services