Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests

Question

Quizplus · Accepted Answer

The situation suggests that Russia is exporting sunflower seeds to Ireland, meaning that Russia has a comparative advantage in producing sunflower seeds over Ireland. On the other hand, Russia is importing coffee from Brazil, implying that Brazil has a comparative advantage in producing coffee over Russia. Therefore, option B is the best choice. Option A is incorrect because it suggests that Russia has a comparative advantage over Brazil in producing coffee, which is not evident from the given information. Option C is incorrect because it talks about absolute advantage, which is not relevant to the situation. Option D is incorrect because it suggests that Russia has an absolute advantage over Brazil in producing coffee, which is not evident from the given information.

Suppose Russia Exports Sunflower Seeds to Ireland and Imports Coffee