The United States has a comparative advantage in producing books and movies because:
A) New York and Hollywood are the historic centers of book publishing and movie production.
B) wages for workers who print books and make movies are lower in the United States than elsewhere.
C) the English language is understood by many people all over the world.
D) the United States gives generous tax breaks to publishers and movie producers.

Question

Quizplus · Accepted Answer

The English language is widely understood and spoken all over the world, which gives the United States a comparative advantage in producing books and movies in English. This makes it easier to distribute these products globally, increasing their potential market and profitability. The other options are not accurate - the historic centers of book publishing and movie production do not necessarily imply a comparative advantage, wages for workers are not necessarily lower, and tax breaks may provide advantages, but not necessarily a comparative advantage.

The United States Has a Comparative Advantage in Producing Books