Suppose the United States must give up the production of one gallon of paint to produce 1 pair of shoes.Mexico must give up 2 gallons of paint to produce one pair of shoes.According to the principle of comparative advantage:
A) there are no benefits to specialization and trade.
B) Mexico should specialize in producing paint,the United States in producing shoes.
C) Mexico should specialize in producing shoes,the United States in producing paint.
D) the United States should produce both because it has an absolute advantage in both products.
Correct Answer:
Verified
Q32: The "what" question of the three basic
Q76: Capital, as a factor of production, includes
Q84: In a capitalist society, consumers signal what
Q214: Use the following to answer questions
Figure:
Q215: Which of the following does NOT impose
Q216: Use the following to answer questions
Figure:
Q217: Which of the following is one of
Q219: All of the following would limit the
Q220: Trade can benefit society as a whole
Q259: "How goods and services are advertised" is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents