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

Question

Responses

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 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 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 would typically involve a situation where a country can produce a good at a lower opportunity cost compared to another country.

In this case, the option that best aligns with the concept of comparative advantage is:

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

This implies that Mexico has a comparative advantage in producing corn using traditional methods that may be more labor-intensive, focusing on their local efficiencies and capabilities rather than competing directly with the low-cost mechanized production in the U.S. The comparative advantage arises from the unique resources (like labor and techniques) that Mexico has in this context.