Assume That Honduras Has a Comparative Advantage in Producing Bananas

question 98

Multiple Choice

Assume that Honduras has a comparative advantage in producing bananas and exports bananas to Brazil.We can conclude that

• A)Honduras also has an absolute advantage in producing bananas relative to Brazil.
• B)Honduras has a lower opportunity cost of producing bananas relative to Brazil.
• C)Brazil has an absolute disadvantage in producing bananas relative to Honduras.
• D)Labor costs are higher for banana producers in Brazil than in Honduras.

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Definitions:

Foramen Magnum

is an opening in the skull through which the spinal cord passes to connect with the brain, crucial for vertebrate skeletal structure.

Human Skull

The bony structure that forms the head in the human skeleton, encapsulating the brain and supporting the structures of the face.

Bipedalism

Is the ability to walk upright on two legs, characteristic of humans and their ancestors.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain down the back, transmitting nerve signals between the brain and the rest of the body.