One of the largest categories of exports from the United States is now pop culture: movies, music, TV programming, and videos. A direct conclusion from this information is that, compared to other countries, the United States has
A) lower wages for producers of pop culture.
B) an absolute advantage in producing pop culture.
C) a comparative advantage in producing pop culture.
D) higher wages for producers of pop culture.

Question

Quizplus · Accepted Answer

The fact that the United States is exporting a large amount of pop culture suggests that it has a comparative advantage in producing these goods. This means that the opportunity cost of producing pop culture in the United States is lower than in other countries, allowing them to produce more efficiently and at a lower cost. This does not necessarily mean that wages for producers are lower, as other factors such as economies of scale may also play a role.

One of the Largest Categories of Exports from the United