Does the United States have a comparative advantage in banana production?
The United States __________ have a comparative advantage in banana production because its opportunity cost of producing them is __________ than Ecuador’s and Guatemala’s.
Wrong! - What gives a country a comparative advantage in banana production? What is the relationship between comparative advantage and opportunity cost?
Well Done! - The United States does not have a comparative advantage in banana production. The countries with a comparative advantage in banana production can produce them at a lower opportunity cost than another country, and the United States cannot produce bananas at a lower opportunity cost than other countries.
The U.S. Commerce Secretary suggests that the simplest way to avoid tariffs is to produce everything domestically—appropriations.house.gov