Suppose That Paraguay and Guyana Are Both Engaged in the Production

question 241

Multiple Choice

Suppose that Paraguay and Guyana are both engaged in the production of soybeans and grapefruit, and that Paraguay has an absolute advantage in the production of both goods. If Guyana has a comparative advantage in the production of soybeans, then Guyana

• A) has a higher opportunity cost for soybeans, which means it should specialize in the production of grapefruit and engage in trade.
• B) has a lower opportunity cost for producing soybeans, but specialization is not feasible because Paraguay has a lower monetary cost of soybean production.
• C) has a lower opportunity cost for soybeans, which means that it should specialize in production of soybeans and engage in trade.
• D) should continue to produce soybeans, but only for domestic consumption, because trade is not a viable option.

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Definitions:

Self-Reliance

The quality of being able to depend on oneself for various needs and to make independent decisions.

Independence

The state of being self-reliant and free from outside control, enabling the individual to make their own decisions and actions.

Gender Equity

The fair treatment and equal opportunities for all genders, aiming to address and rectify inequalities.

Gender Stereotypes

Preconceived and oversimplified beliefs about the characteristics, attributes, and roles deemed appropriate for males and females in a society.