Which of the following is an example of comparative advantage?(1 point)

Question

Responses

higher-priced manufactured goods made in the U.S. with high wages and stringent environmental protections
higher-priced manufactured goods made in the U.S. with high wages and stringent environmental protections

higher-priced manufactured goods made in China with higher wages and stringent environmental protections
higher-priced manufactured goods made in China with higher wages and stringent environmental protections

higher-priced corn grown in Mexico using labor-intensive traditional techniques
higher-priced corn grown in Mexico using labor-intensive traditional techniques

lower-priced corn grown by U.S. producers with government subsidies and large-scale mechanized agriculture

Answer 1

An example of comparative advantage is:

lower-priced corn grown by U.S. producers with government subsidies and large-scale mechanized agriculture.

Comparative advantage occurs when a country can produce a good at a lower opportunity cost compared to other countries. In this case, U.S. producers benefit from subsidies and mechanization, allowing them to produce corn more efficiently and at a lower price than other potential producers.