Scenario 34

question 13

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.What is the opportunity cost of producing coffee in Chile?

• A)Half a pound of sugar
• B)Two-fifth of a pound of sugar
• C)2 pounds of sugar
• D)One-third of a pound of sugar
• E)4 pounds of sugar

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Definitions:

Social Inequality

describes the unequal distribution of wealth, opportunities, and privileges within a society, often based on factors like race, gender, or socioeconomic status.

Norms

The unwritten rules and expectations that govern the behavior of individuals within a society or group, guiding what is considered normal or acceptable.

Rules

Prescribed directives or principles meant to govern behavior or processes within a specific context.

Laws

Rules established by a governing authority to regulate conduct.