According to the theory of comparative advantage,
a country should produce and
a. import goods in which it has an absolute
advantage.
b. export goods in which it has an absolute
advantage.
c. import goods in which it has a comparative
advantage.
d. export goods in which it has a comparative
advantage.
Q6:
In Exhibit 13, which country has the comparative
advantage in the production of potatoes?
a. The United States because it requires fewer
resources to produce potatoes
b. The United States because it has the lower opportunity
cost of potatoes
c. Ireland because it requires fewer resources to produce
potatoes
d. Ireland because it has the lower opportunity cost
of potatoes