Scenario 34

question 103

Multiple Choice

Scenario 34.1 Suppose labor productivity differences are the only determinants of comparative advantage, and Brazil and Chile both produce only coffee and sugar.In Chile, either 5 units of coffee or 2 units of sugar can be produced in one day.In Brazil, a day of labor produces either 2 units of coffee or 1 unit of sugar.
Refer to Scenario 34.1.Which of the following statements is true?

• A)Brazil has an absolute advantage in producing only coffee.
• B)Brazil has an absolute advantage in producing only sugar.
• C)Chile has an absolute advantage in the production of both coffee and sugar.
• D)Chile has an absolute advantage in producing only coffee.
• E)Brazil has an absolute advantage in the production of both coffee and sugar.

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Definitions:

Contributory Negligence

Contributory Negligence is a legal doctrine that may limit or prevent a plaintiff's recovery if it can be shown that their own negligence contributed to the harm suffered.

Negligence Per Se

The legal doctrine where an act is considered negligent because it violates a statute or regulation.

Assumption of Risk

A legal principle that a person may not recover for injuries received from a dangerous activity if they voluntarily exposed themselves to the danger with full knowledge of the risks involved.

Contributory Negligence

A legal doctrine where if the plaintiff in a negligence case is also found to be at fault to any degree, they cannot recover damages from the defendant.