China is able to produce wheat relatively less inefficientlythan it is able to produce aircraft.By letting China specialize in the production of wheat an importing some wheat from China,the United States is able to devote its resources to aircraft.In this example,the United States is:
A) utilizing strategic government intervention
B) gaining first-mover advantage
C) leveraging absolute advantage
D) leveraging comparative advantage

Question

Quizplus · Accepted Answer

The United States is leveraging comparative advantage by allowing China to specialize in wheat production, which it can produce relatively more efficiently, while the U.S. focuses on aircraft production, where it has a comparative advantage.

China Is Able to Produce Wheat Relatively Less Inefficientlythan It