Assume That Honduras Has a Comparative Advantage in Producing Bananas

question 98

Multiple Choice

Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil.We can conclude that

• A)Honduras also has an absolute advantage in producing bananas relative to Brazil.
• B)Honduras has a lower opportunity cost of producing bananas relative to Brazil.
• C)Brazil has an absolute disadvantage in producing bananas relative to Honduras.
• D)Labor costs are higher for banana producers in Brazil than in Honduras.

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Definitions:

Legal Requirements

Statutory obligations that individuals or companies must follow as prescribed by law, which can vary by jurisdiction and industry sector.

Hot-Stove Rule

A principle in discipline management likening the consequences of misconduct to touching a hot stove, emphasizing that discipline should be immediate, consistent, impersonal, and informative.

Involuntary Turnover

The termination of employees' positions due to factors beyond their control, such as layoffs or downsizing, not due to personal performance.

Voluntary Turnover

Occurs when employees choose to leave their positions, often due to better job offers, personal reasons, or dissatisfaction with their current roles.