Suppose the United States Is More Productive Than China at Producing

Multiple Choice

Suppose the United States is more productive than China at producing both T-shirts and cell phones. The theory of comparative advantage suggests that consumption in both countries will:

A) increase if the United States produces both goods.
B) increase if each country produces the good for which it has the lowest opportunity cost.
C) not change if China produces either T-shirts or cell phones.
D) remain the same since nothing can be done to increase production in the two countries.