The tiny nation of Tinian is extremely efficient in the mining of tin. However, its climate and terrain make it difficult to produce corn. According to the theory of comparative advantage, Tinian should
A) produce both tin and corn in order to remain self-sufficient.
B) watch the global market to see which product is bringing 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

The theory of comparative advantage contends that a nation should produce and export those goods that it produces efficiently and effectively, and import those goods that other countries produce more efficiently and effectively.

The Tiny Nation of Tinian Is Extremely Efficient in the Mining