Scenario 34

question 45

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.Calculate the opportunity cost of producing sugar in Brazil.

• A)Half a pound of coffee
• B)4 pounds of coffee
• C)1 pound of coffee
• D)2 pounds of coffee
• E)One and a half pounds of coffee

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Definitions:

Television Sets

Electronic devices designed to receive and display television broadcasts and other visual content.

Time Constraint

A limitation or deadline in a process or activity that defines the period in which something must be accomplished.

Forming Department

In manufacturing, it refers to the section where raw materials are shaped into parts according to specifications using various processes.