Suppose Brazil has a comparative advantage in coffee production and Mexico has a comparative advantage in tomato production.If these two countries specialize and trade,which of the following is true?
A) Brazilian tomato producers are worse off.
B) Brazilian coffee producers are worse off.
C) Mexican tomato producers are worse off.
D) Mexican coffee producers are better off.
Correct Answer:
Verified
Q39: Consumption possibilities refers to the:
A) Maximum amount
Q40: Specialization and trade benefits:
A) Both rich countries
Q41: Terms of trade refer to:
A) Negotiations made
Q42: Comparative advantage refers to a country's:
A) Ability
Q43: If a country has an absolute advantage,it
Q45: If a country has a lower opportunity
Q46: Suppose Chile has a lower opportunity cost
Q47: Suppose the United States has a lower
Q48: If a country can produce rice with
Q49: If the United States has a comparative
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