Figure 3-8

-Refer to Figure 3-8.Colombia should specialize in the production of
A) coffee and import soybeans.
B) soybeans and import coffee.
C) both goods and import neither good.
D) neither good and import both goods.

Question

Figure 3-8
 
-Refer to Figure 3-8.Colombia should specialize in the production of
A) coffee and import soybeans. 
B) soybeans and import coffee. 
C) both goods and import neither good. 
D) neither good and import both goods.

Quizplus · Accepted Answer

According to the production possibilities frontier in Figure 3-8, the opportunity cost of producing coffee is lower for Colombia than the opportunity cost of producing soybeans. Therefore, Colombia should specialize in coffee production and import soybeans.

Figure 3-8 -Refer to Figure 3-8.Colombia Should Specialize in the Production of in the Production