Suppose that the nation of Rubium has a comparative disadvantage in the production of cocoa. Rubium should:
A) import cocoa.
B) produce cocoa for domestic consumption only.
C) produce cocoa for export only.
D) specialize in the production of cocoa in an attempt to increase productive eﬃciency.

Question

Quizplus · Accepted Answer

Countries with a comparative disadvantage in producing a certain good should import that good from countries with a comparative advantage, allowing for more efficient global resource allocation.

Suppose That the Nation of Rubium Has a Comparative Disadvantage