Mexico Is Capable of Producing 20 Auto Tires or 16

question 12

Multiple Choice

Mexico is capable of producing 20 auto tires or 16 microcircuits per labor hour. Brazil is capable of producing 24 auto tires or 24 microcircuits per labor hour. Based on this information, we can conclude that:

• A) Brazil has an absolute advantage in both goods.
• B) Brazil will export both goods to Mexico.
• C) Mexico has a comparative advantage in tires.
• D) Answers Brazil has an absolute advantage in both goods and Mexico has a comparative advantage in tires are both correct.
• E) Answers Brazil has an absolute advantage in both goods, Brazil will export both goods to Mexico, and Mexico has a comparative advantage in tires are all correct.

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Definitions:

Immunity

The biological state or condition in which an organism has sufficient biological defenses to avoid infection, disease, or other unwanted biological invasion.

Indian Crops

Plants domesticated and cultivated by Native American peoples, including maize (corn), beans, and squash, which were essential to indigenous agricultural systems.

Natural Predators

Organisms that hunt and consume other organisms for food, playing crucial roles in maintaining the balance of ecosystems.

Bartolome de las Casas

A 16th-century Spanish friar and historian, known for his advocacy for the rights of indigenous peoples in the Americas and critical accounts of the Spanish conquest.