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Suppose the United States Has a Comparative Advantage Over Mexico

Question 118

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Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that


A) in order to consume beyond its PPF, the United States should produce more pork than what it requires and export some of it to Mexico.
B) in order to consume beyond its PPF, the United States should produce a moderate quantity of pork and import the remainder of what it requires from Mexico.
C) in order to consume beyond its PPF, the United States should refrain altogether from producing pork and import all of what it requires from Mexico.
D) Mexico has nothing to gain from importing United States pork.

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