Scenario: Hawaii and South Carolina Are Trading Partners

Multiple Choice

Scenario: Hawaii and South Carolina are trading partners. Hawaii has an absolute advantage in the production of both coffee and tea. The opportunity cost of producing 1 pound of tea in Hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in South Carolina is 1/3 pound of coffee.
-Refer to the scenario above.If both nations decide to trade,which of the following statements is true?

A) Hawaii should export both tea and coffee.
B) Hawaii should import both tea and coffee.
C) Hawaii should export tea, and South Carolina should export coffee.
D) Hawaii should export coffee, and South Carolina should export tea.