Multiple Choice

-Exhibit EE-3 shows Brazil's and Cuba's production possibilities of sugar and tobacco. Which of the following is true?
A) Cuba has the comparative advantage in the production of both sugar and tobacco.
B) Brazil has the comparative advantage in the production of both sugar and tobacco.
C) Cuba has the absolute advantage in the production of both sugar and tobacco.
D) There are no gains from trade for both Brazil and Cuba.
E) Cuba has the comparative advantage in the production of sugar.
Correct Answer:
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