Refer to the diagram, which pertains to two nations and a speciﬁc product. In equilibrium, the nation represented by lines FA and FC will

Question

Quizplus · Accepted Answer

The nation represented by lines FA and FC has a comparative advantage in producing H since its opportunity cost of producing H is lower than the other nation (represented by lines GB and GD). Therefore, the nation will specialize in producing and exporting H, while importing other goods from the other nation. In equilibrium, the nation will import H from the other nation, which is represented by lines GB and GD, making choice B the correct answer.

Refer to the Diagram, Which Pertains to Two Nations and a Speciﬁc