Exhibit 21-4 Coffee and Tea Output (Pounds Per Hour) If Specialization Were Carried Out by Each Country in Exhibit

question 92

Multiple Choice

Exhibit 21-4 Coffee and tea output (pounds per hour) $$\begin{array} { | l | c | c | } \hline \text { Country } & \text { Coffee } & \text { Tea } \\\hline \text { Brazil } & 10 & 5 \\\text { China } & 8 & 8 \\\hline\end{array}$$ If specialization were carried out by each country in Exhibit 21-4 on the basis of comparative advantage, then:

• A) Brazil would produce neither coffee nor tea.
• B) China would produce both coffee and tea.
• C) Brazil would produce tea and China would produce coffee.
• D) Brazil would produce coffee and China would produce tea.

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Definitions:

Consumption

The usage of goods and services by households, including the actions of selecting, purchasing, using, and disposing of products.

Double Taxation

The levy of tax by two or more jurisdictions on the same declared income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes).

Tax Base

The assessed value of all taxable income, property, assets, or other items that a government can tax.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.