In which of the following cases should the United States produce more noodles th

Question

In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine? a. The opportunity cost of producing a gallon of wine is the same for Italy as it is for the United States. b. The United States has an absolute advantage over Italy in producing noodles. c. Americans know less than Italians know about cooking noodles. d. Italy has a comparative advantage over the United States in producing wine.

Explanation / Answer

d) Italy has a comparative advantage over the united states in prodcing wines

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