Suppose Brazil Has an Absolute Advantage Over Other Countries in Producing

question 2

Multiple Choice

Suppose Brazil has an absolute advantage over other countries in producing almonds,but other countries have a comparative advantage over Brazil in producing almonds.If trade in almonds is allowed,Brazil

• A)will import almonds.
• B)will export almonds.
• C)will either import almonds or export almonds,but it is not clear from the given information.
• D)would have nothing to gain either from exporting or importing almonds.

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Definitions:

Income Levels

The categories of income range that differentiate between groups of people within a society, often used to indicate economic disparity.

Tax Relationship

The correlation between various types of taxes and how they interact with individuals or businesses.

Elasticity of Supply

The sensitivity of the supply volume of an item to changes in its pricing.

Consumer

An individual who purchases goods or services for personal use rather than for manufacturing or resale.