Suppose That in Colombia One Unit of Labor Can Produce

question 91

Multiple Choice

Suppose that in Colombia one unit of labor can produce 8 tons of papayas or 2 tons of bananas. In Brazil, one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?

• A) Columbia has a comparative advantage in producing papayas but not bananas.
• B) Columbia has a comparative advantage in producing papayas and bananas.
• C) These countries would increase combined consumption if they specialized and traded.
• D) These countries cannot gain from trading.

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Definitions:

Diseases

Medical conditions characterized by an impairment of an individual's normal physical, emotional, or mental state.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or tissues.

Endocrinology

A branch of medicine dealing with the endocrine system, its diseases, and its specific secretions called hormones, focusing on the body’s chemical messengers.

Internal Secretion

Internal secretion involves the release of hormones or other substances directly into the blood or tissues by glands, playing a crucial role in bodily functions.