The United States is capable of producing many goods and services that it imports,but it does not because

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that if a country can import goods at a lower opportunity cost than producing them domestically, it should import those goods and specialize in producing goods and services that it can produce most efficiently. Therefore, the United States may choose to import certain goods and services that it is capable of producing domestically but can acquire at a lower cost through trade.

The United States Is Capable of Producing Many Goods and Services