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.

---

Definitions:

Attitude

The settled way of thinking or feeling about something, which can significantly influence an individual's behavior and choices.

Routine Problem Solving

A quick decision-making process used for addressing simple or frequently encountered problems.

Habit

A regular behavior or routine that is repeated often and tends to occur subconsciously.

Brand Loyalty

Brand loyalty is the tendency of consumers to continuously purchase the same brand's products or services over competitors due to favorable experiences or perceptions.