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Brazil and Canada Trade Two Goods: Bananas and Ice Pops

Question 103

Multiple Choice

Brazil and Canada trade two goods: bananas and ice pops. Brazil has a comparative advantage in banana production. From this, we know that:


A) Brazil produces bananas at a lower explicit cost than does Canada.
B) Brazil produces ice pops at a lower explicit cost than does Canada.
C) Brazil produces bananas at a lower opportunity cost than does Canada.
D) Brazil produces ice pops at a lower opportunity cost than does Canada.

Correct Answer:

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