Question

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.

Answer 1

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

Step-by-step 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