Suppose England has a comparative advantage over the United States in producing tea.If this is true,then:
A) England should produce more tea than it wants and sell the rest to the United States.
B) England should produce a small amount of tea and buy the rest of the tea it wants from the United States.
C) England should not produce tea, and should instead buy it all from the United States.
D) the United States has nothing to gain from buying tea from England.

Question

Quizplus · Accepted Answer

If England has a comparative advantage in producing tea, it means that it can produce tea at a lower opportunity cost than the United States. Therefore, it makes sense for England to produce more tea than it wants and sell the excess to the United States, as it can produce it more efficiently. This benefits both countries, as they are each specializing in producing the goods in which they have a comparative advantage.

Suppose England Has a Comparative Advantage Over the United States