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) higher wages for producers of pop culture.
B) lower wages for producers of pop culture.
C) a comparative advantage in producing pop culture.
D) an absolute advantage in producing pop culture.

Question

Quizplus · Accepted Answer

The fact that the United States is a large exporter of pop culture suggests that the country has a comparative advantage in producing these goods. This means that the US can produce pop culture more efficiently or at a lower opportunity cost than other countries, allowing them to export these goods and gain profits. This does not necessarily mean that wages for producers of pop culture are higher or lower in the US compared to other countries.

One of the Largest Categories of Exports from the United