Table 35.1 $$\begin{array} { | l | c | c | }
\hline { \text { Country } } & \text { Tons of Soybeans } & \text { Computer } \
\hline \text { China } & 100 & 300 \
\hline \text { United States } & 150 & 750 \
\hline
\end{array}$$ Based on the information in Table 35.1,assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods.The output of computers and soybeans would be greatest if
A)China specialized in producing soybeans,and the United States specialized in producing computers.
B)Both countries prohibited trade.
C)China specialized in producing computers,while the United States specialized in producing soybeans.
D)The United States produced both goods and exported them to China.

Question

Table 35.1 $$\begin{array} { | l | c | c | } 
\hline  { \text { Country } } & \text { Tons of Soybeans } & \text { Computer } \
\hline \text { China } & 100 & 300 \
\hline \text { United States } & 150 & 750 \
\hline
\end{array}$$ Based on the information in Table 35.1,assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods.The output of computers and soybeans would be greatest if
A)China specialized in producing soybeans,and the United States specialized in producing computers.
B)Both countries prohibited trade.
C)China specialized in producing computers,while the United States specialized in producing soybeans.
D)The United States produced both goods and exported them to China.

Quizplus · Accepted Answer

China has a comparative advantage in producing soybeans (lower opportunity cost), and the United States has a comparative advantage in producing computers. Specialization based on comparative advantage and trade would maximize total output.

Table 351 Based on the Information in Table 35