Assume That Brazil Gives Up 3 Automobiles for Each Ton

question 16

Multiple Choice

Assume that Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces.

• A) Brazil has a comparative advantage in automobile production and should specialize in coffee.
• B) Brazil has a comparative advantage in coffee production and should specialize in the production of automobiles.
• C) Brazil has a comparative advantage in coffee production and should specialize in coffee production.
• D) Brazil has a comparative advantage in automobile production and should specialize in automobile production.

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Definitions:

Psychokinesis

The supposed ability to move or manipulate objects with the mind alone, without physical interaction.

Vestibular Sense

The sensory system that contributes to balance and spatial orientation by detecting changes in motion and gravity.

Kinesthesia

The perception of body movements and position sense, often referred to as proprioception.

Sensory Interaction

The principle that one sense may influence another, as when the smell of food enhances its taste.