The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-If using the same resources, the U.S. workers can produce more of any good than Mexican workers, then the United States should produce every good.

Quizplus · Accepted Answer

This statement ignores the principle of comparative advantage, which suggests that countries should specialize in producing goods for which they have a lower opportunity cost, not necessarily in which they have an absolute production advantage.