Figure 3-19 Chile's Production Possibilities Frontier

question 9

Multiple Choice

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

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

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Definitions:

Small Number

A numeric value that is considered to be significantly less in magnitude compared to typical or average values.

Large Number

A numeric value that is significantly above average or expected in size or magnitude.

Porter's Five Forces

A framework analyzing a business's competitive environment based on five key forces: competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants.

Zero-Sum Game

A situation in which one participant's gains or losses are exactly balanced by the losses or gains of the other participants.