Scenario 20

question 20

Multiple Choice

Scenario 20.1 Suppose labor productivity differences are the only determinants of comparative advantage,and Brazil and Chile both produce only coffee and sugar.In Chile,either 5 units of coffee or 2 units of sugar can be produced in one day.In Brazil,a day of labor produces either 2 units of coffee or 1 unit of sugar.
-Refer to Scenario 20.1.Calculate the opportunity cost of producing sugar in Brazil.

• A)Half a pound of coffee
• B)4 pounds of coffee
• C)1 pound of coffee
• D)2 pounds of coffee
• E)One and a half pounds of coffee

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Definitions:

Expiration Date

The date on which an option, futures contract, or similar financial instrument becomes void and the right to exercise it ceases.