If the World Price of Sugar Is Lower Than Brazil's

question 54

Multiple Choice

If the world price of sugar is lower than Brazil's domestic price of sugar without trade,then Brazil

• A) should import sugar.
• B) has a comparative advantage in sugar.
• C) should produce just enough sugar to satisfy domestic demand.
• D) should produce no sugar domestically.

---

Definitions:

Asset Account

An account on a company's balance sheet that represents a resource with economic value that is controlled or owned.

Going Concern Assumption

The assumption that the company will continue in operation for the foreseeable future.

Accounting Principles

Fundamental guidelines or rules that govern the field of accounting and ensure the accuracy and consistency of financial statements.

Accrued Revenues

Income recognized on the income statement but not yet received in cash or recorded by the company.