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If Brazil Gives Up Three Automobiles for Each Tonne of Coffee

question 254

Multiple Choice

If Brazil gives up three automobiles for each tonne of coffee it produces,while Peru gives up seven automobiles for each tonne of coffee it produces,then Brazil has a comparative advantage in _____ production and should specialize in _____.


Definitions:

Unilateral Contract

An agreement in which one party makes a promise in exchange for the other party's action but does not require a reciprocal promise to act.

Preexisting Duty Rule

A legal principle that states an existing duty cannot serve as consideration for a new contract, but modifications can occur if additional or new consideration is provided.

Unforeseen Circumstances

situations or events that were not predicted or expected and can significantly impact contracts or agreements.

Enforcing Contracts

The legal process of ensuring that parties to a contract fulfill their obligations as specified in the contract.

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