Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar. In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day. In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar. Calculate the opportunity cost of producing sugar in Brazil

a. Half a pound of coffee
b. 4 pounds of coffee
c. 1 pound of coffee
d. 2 pounds of coffee
e. One and a half pounds of coffee


d

Economics

You might also like to view...

________ the quantity of money in the United States

A) The President of the United States regulates B) Commercial banks regulate C) The Federal Reserve System regulates D) The Department of Treasury regulates E) The State Department regulates

Economics

Define a partnership

What will be an ideal response?

Economics

If the consumption of a good by one person reduces its consumption by others, then the good is

A. nonrivalrous in consumption. B. rivalrous in consumption. C. nonexcludable. D. excludable. E. b and d

Economics

A decrease in supply will occur when

A) the supply curve shifts downward to the right. B) the supply curve shifts upward to the left. C) the demand curve shifts downward to the left. D) the demand curve shifts upward to the right.

Economics