Suppose Paraguay Can Produce 12 Wheat or 3 Corn

question 61

Multiple Choice

Suppose Paraguay can produce 12 wheat or 3 corn.Suppose Bolivia can produce 4 wheat or 2 corn.Suppose opportunity costs are constant.Given these production possibilities,

• A)Paraguay has a comparative advantage in wheat.
• B)Paraguay has a comparative advantage in corn.
• C)Paraguay has a comparative advantage in both goods.
• D)Paraguay has an absolute advantage in neither good.

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Definitions:

Gear

A mechanical component featuring teeth that mesh with other gear teeth to transmit torque and speed in machinery.

Seized Caliper

Refers to a brake caliper that has become stuck in a position, either applied or released, leading to impaired braking performance.

Caliper Piston

A component of a disc brake system that moves within the caliper to press brake pads against the rotor, slowing the vehicle.

Seating Pads

Cushioned pads placed on chairs or seats to enhance comfort by providing additional support and softness.