The Dominican Republic Has a Comparative Advantage in the Production

question 109

Multiple Choice

The Dominican Republic has a comparative advantage in the production of tobacco, and Panama has a comparative advantage in the production of oranges. If both countries specialize based on the theory of comparative advantage

• A) only the production of tobacco will increase.
• B) only the production of both goods will increase.
• C) only the consumption of both goods will increase.
• D) the production and consumption of both goods will increase.

---

Definitions:

Coffee

A brewed drink prepared from roasted coffee beans.

Denatures

The process by which proteins lose their three-dimensional structure and function due to factors like changes in pH or temperature.

Pleural Fluid

A thin layer of fluid between the two layers of the pleura, aiding in lubricating and reducing friction during breathing movements of the lungs.

Cohesion

The attraction between molecules of the same substance, contributing to the stability of liquid droplets.