Use the Following to Answer Questions

question 94

Essay

Use the following to answer questions :
-(Table: Production Possibilities in the United States and Colombia) Look at the table Production Possibilities in the United States and Colombia. Suppose that in autarky, Colombia produces 10 tons of coffee and 3 computers. The United States produces 8 tons of coffee and 20 computers. Can specialization and trade increase global production? Justify your answer.

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Definitions:

Other Expenses

Costs not directly related to the production of goods or services, including administrative and general expenses.

Planning Budget

A forecast that outlines future income, expenses, and financial goals, guiding financial decision-making over a specific period.

Fixed Cost

Fixed cost refers to business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or insurance, integral to budgeting and planning.

Total Expenses

The sum of all costs and expenses, both fixed and variable, incurred by a business during a specific period.