Assume,for the U.S. ,that the domestic price of beef without international trade is lower than the world price of beef.This suggests that,in the production of beef,
A) the U.S.has a comparative advantage over other countries and the U.S.will export beef.
B) the U.S.has a comparative advantage over other countries and the U.S.will import beef.
C) other countries have a comparative advantage over the U.S.and the U.S.will export beef.
D) other countries have a comparative advantage over the U.S.and the U.S.will import beef.

Question

Quizplus · Accepted Answer

The U.S. has a comparative advantage in beef production because its domestic price is lower than the world price, indicating it can produce beef more efficiently than other countries, leading to exports.