Figure 3-19 Chile's Production Possibilities Frontier

question 40

Multiple Choice

Figure 3-19
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier
-Refer to Figure 3-19.Chile has a comparative advantage in the production of

• A)coffee and Colombia has a comparative advantage in the production of soybeans.
• B)soybeans and Colombia has a comparative advantage in the production of coffee.
• C)both goods and Colombia has a comparative advantage in the production of neither good.
• D)neither good and Colombia has a comparative advantage in the production of both goods.

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Definitions:

Spread of Investment

The diversification of investments across different sectors, assets, or geographies to reduce risk and achieve a more stable return.

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Communication

The process of transferring information, ideas, emotions, and intentions between individuals through verbal, non-verbal, written, or visual means.

New Technology

Innovative or recently developed technological tools, systems, or methods.