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NYC NYC
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8 years ago
The United States imports DVD recorders from China and China imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that:
A) the opportunity cost of producing DVD recorders in China is lower than that in the United States.
B) the United States has comparative advantage in producing computer chips.
C) the opportunity cost of producing computer chips in the United States is lower than that in China.
D) all of the above
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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NYC Author
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#2
8 years ago
Thanks for answering Slight Smile
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