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If the Opportunity Cost of Producing a Ton of Coffee

Question 48

Multiple Choice

If the opportunity cost of producing a ton of coffee in the U.S. is twenty tons of rice, while the opportunity cost of producing a ton coffee in Costa Rica is four tons of rice and the terms of trade is ten tons of rice delivered per ton of coffee received,


A) the U.S. can benefit by trading rice to Costa Rica for coffee.
B) Costa Rica can benefit by trading rice to the U.S. for coffee.
C) Costa Rica can benefit by trading coffee to the U.S. for rice.
D) the U.S. can benefit by trading rice to Costa Rica for coffee and Costa Rica can benefit by trading coffee to the U.S. for rice.

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