To determine which country should specialize in which product, we need to analyze their opportunity costs. Opportunity cost is defined as what you give up in order to produce an additional unit of a different good.
### Step-by-Step Solution:
#### Step 1: Determine Opportunity Costs
Using the given data:
- United States: Can produce 60,000 units of corn or 10,000 units of diamonds per week.
- Congo: Can produce 20,000 units of corn or 5,000 units of diamonds per week.
We calculate the opportunity cost for producing one unit of each good for both countries:
United States:
- Opportunity cost of 1 unit of corn (in terms of diamonds):
[tex]\[
\text{Opportunity cost of 1 unit of corn} = \frac{\text{Diamonds}}{\text{Corn}} = \frac{10}{60} \approx 0.1667
\][/tex]
- Opportunity cost of 1 unit of diamonds (in terms of corn):
[tex]\[
\text{Opportunity cost of 1 unit of diamonds} = \frac{\text{Corn}}{\text{Diamonds}} = \frac{60}{10} = 6.0
\][/tex]
Congo:
- Opportunity cost of 1 unit of corn (in terms of diamonds):
[tex]\[
\text{Opportunity cost of 1 unit of corn} = \frac{\text{Diamonds}}{\text{Corn}} = \frac{5}{20} = 0.25
\][/tex]
- Opportunity cost of 1 unit of diamonds (in terms of corn):
[tex]\[
\text{Opportunity cost of 1 unit of diamonds} = \frac{\text{Corn}}{\text{Diamonds}} = \frac{20}{5} = 4.0
\][/tex]
#### Step 2: Compare Opportunity Costs
Now, we compare the opportunity costs for each country:
- For corn:
- The United States: 0.1667 diamonds per unit of corn.
- Congo: 0.25 diamonds per unit of corn.
- The United States has a lower opportunity cost for producing corn.
- For diamonds:
- The United States: 6.0 units of corn per unit of diamonds.
- Congo: 4.0 units of corn per unit of diamonds.
- Congo has a lower opportunity cost for producing diamonds.
#### Step 3: Determine Specialization
According to the principle of comparative advantage, each country should specialize in the good for which they have the lower opportunity cost:
- The United States should specialize in producing corn because it has the lower opportunity cost for corn.
- Congo should specialize in producing diamonds because it has the lower opportunity cost for diamonds.
### Conclusion
Based on the opportunity costs:
- The United States should specialize in corn and trade for diamonds.
- Congo should specialize in diamonds and trade for corn.
Therefore, the correct statement is:
The United States should specialize in corn and trade for diamonds.
