If the opportunity cost of manufacturing machinery is higher in the United States than in Britain and the opportunity cost of manufacturing sweaters is lower in the United States than in Britain,then the United States will:
A)export both sweaters and machinery to Britain.
B)import both sweaters and machinery from Britain.
C)export sweaters to Britain and import machinery from Britain.
D)import sweaters from Britain and export machinery to Britain.

Question

Quizplus · Accepted Answer

Because the opportunity cost of manufacturing machinery is higher in the United States than in Britain, it is more efficient for the United States to import machinery from Britain. On the other hand, the opportunity cost of manufacturing sweaters is lower in the United States than in Britain, meaning it is more efficient for the United States to export sweaters to Britain. Therefore, the United States will export sweaters to Britain and import machinery from Britain.

If the Opportunity Cost of Manufacturing Machinery Is Higher in the United