-Exhibit EE-3 shows Brazil's and Cuba's production possibilities of sugar and tobacco. Which of the following is true?

Question

Quizplus · Accepted Answer

Brazil having an absolute advantage means it can produce more of both goods using the same amount of resources compared to Cuba. Comparative advantage involves producing a good at a lower opportunity cost, which isn't specified in the choices as being true for either country in both goods.

-Exhibit EE-3 Shows Brazil's and Cuba's Production Possibilities of Sugar