Suppose That Brazil Has a Comparative Advantage in Coffee and Mexico

question 14

Multiple Choice

Suppose that Brazil has a comparative advantage in coffee and Mexico has a comparative advantage in tomatoes.Which of the following groups would be worse off if these countries specialize and trade?

• A)Mexican coffee producers.
• B)Brazilian coffee producers.
• C)Mexican tomato producers.
• D)All groups are better off when specialization and trade take place.

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Definitions:

Amygdala

A set of neurons located deep in the brain's medial temporal lobe, playing a key role in processing emotions such as fear, anger, and pleasure.

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Any object, event, or change in the environment that elicits a sensory or behavioral response.