Why Does Spain Have an Absolute Advantage in Growing Saffron

question 1

Multiple Choice

Why does Spain have an absolute advantage in growing saffron?

• A) Spain has some of the lowest labour rates in the world so the time-consuming harvesting process is less expensive.
• B) Treaties limit which country can produce saffron.
• C) The spice is relatively inexpensive so other countries are not interested in growing it.
• D) Saffron thrives in Spain's climate and soil but does not do as well elsewhere.

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Definitions:

Probability

Refers to the degree of certainty associated with the occurrence of a specific outcome in a random event.

z

Often symbolizes the standard score in statistics, indicating how many standard deviations an element is from the mean.

Uniformly Distributed

A description of a distribution where all outcomes are equally likely, the probability distribution is constant.

Probability

The quantification of the chance that an event will happen, expressed as a number ranging from 0 to 1.