GACE Practice Test 2025 – The All-in-One Guide to Mastering the Georgia Educator Certification

Countries that have a comparative advantage in the production of cotton should export another product and import cotton (Choice A) because the concept of comparative advantage suggests that a country should specialize in the production of goods in which it has a lower opportunity cost. This means that the country can produce a larger quantity of cotton per unit of resources compared to other countries, allowing it to trade internationally and increase its overall economic welfare.

Choice B is incorrect because it suggests that the country should export cotton and import other products, which would not align with the principle of comparative advantage.

Choice C is incorrect because implementing tariffs to protect the domestic cotton industry would go against the concept of free trade, which is essential for countries to benefit from their comparative advantage.

Choice D is incorrect because reducing their comparative advantage and diversifying their economy would decrease the country's overall efficiency and potentially harm its economy.