-Using the data in the above table, and assuming constant opportunity costs, it is likely that
A) the United States will import food.
B) Mexico will export cloth.
C) the United States will export both cloth and food.
D) Mexico will export both cloth and food.

Question

-Using the data in the above table, and assuming constant opportunity costs, it is likely that
A) the United States will import food. 
B) Mexico will export cloth. 
C) the United States will export both cloth and food. 
D) Mexico will export both cloth and food.

Quizplus · Accepted Answer

If the United States has a comparative advantage in producing cloth due to lower opportunity costs, it will export cloth and import food, assuming constant opportunity costs.

-Using the Data in the Above Table, and Assuming Constant