When Brazil Can Generate a Product Using Fewer Labor Hours

question 104

Multiple Choice

When Brazil can generate a product using fewer labor hours and resources than the United States,an economist would say that Brazil had

• A)a comparative advantage in production of the product.
• B)an absolute advantage in production of the product.
• C)a higher opportunity cost of producing the product.
• D)no incentive to import the product,regardless of the cost-price conditions for other products.

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Definitions:

Mass Consumption

A phenomenon wherein a large number of people purchase significant quantities of goods and services, often associated with a high standard of living.

Western Europe

A region comprising the westerly countries of Europe, often including countries such as France, Germany, and the United Kingdom, among others.

Industrial Country

A nation with a relatively high level of industrialization, economic development, and standard of living.

Great Recession

The Great Recession refers to the severe global economic downturn that occurred from late 2007 through mid-2009, characterized by significant declines in economic activity and employment.