Table 3-40

-Refer to Table 3-40. Italy should specialize in the production of
A)boats and import cars.
B)cars and import boats.
C)both goods and import neither good.
D)neither good and import both goods.

Question

Table 3-40
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-Refer to Table 3-40. Italy should specialize in the production of
A)boats and import cars. 
B)cars and import boats. 
C)both goods and import neither good. 
D)neither good and import both goods.

Quizplus · Accepted Answer

Italy should specialize in the production of boats and import cars if it has a comparative advantage in producing boats, meaning it can produce boats at a lower opportunity cost than cars.

Table 3-40 ​

Table 3-40