Refer to the above table. If opportunity costs are constant, residents of the United States will gain from specializing and trading with Switzerland if the
A) produce both clocks and films and export clocks to Switzerland.
B) produce both clocks and films and export both to Switzerland.
C) import films and export clocks to Switzerland.
D) import clocks and export films.

Question

Quizplus · Accepted Answer

The United States should specialize in producing and exporting the good for which it has a comparative advantage. If opportunity costs are constant, the US will gain by exporting films (where it has a comparative advantage) and importing clocks from Switzerland.

Refer to the Above Table