Country A is an extremely efficient producer of tin.However,its climate and terrain makes it difficult to produce corn.According to the theory of comparative advantage,Country A should:
A)produce both tin and corn in order to remain self-sufficient.
B)watch the global market to see which product brings the highest price.
C)import the resources needed to produce corn.
D)concentrate its production on tin and buy corn from an efficient producer.

Question

Quizplus · Accepted Answer

According to the theory of comparative advantage, Country A should focus on producing the good in which it has a comparative advantage (tin) and trade for the good in which it does not have a comparative advantage (corn). Therefore, Country A should concentrate its production on tin and buy corn from an efficient producer.

Country a Is an Extremely Efficient Producer of Tin