The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage
a. only the production of wheat will increase.
b. only the production of both goods will increase.
c. the production and consumption of both goods will increase.

c. the production and consumption of both goods will increase.

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

A country should specialise in the trade of the good for which it has comparative advantage in its production.

If a country produces only goods for which it has comparative advantage, the quantities produced would increased as the country would be able to use more resocurces in production.

While the quantity consumed would increase as more quantities would be imported when compared to the little amount of the good that would have been produced if there was no specialisation.

I hope my answer helps you

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi