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Mubashshira Waqas
on Oct 26, 2024

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Assume that Colombia gives up three motorcycles for each ton of coffee it produces,while Bolivia gives up seven motorcycles for each ton of coffee it produces.Colombia has a comparative advantage in _____ production and should specialize in _____.

A) motorcycle;coffee
B) coffee;motorcycles
C) coffee;coffee
D) motorcycle;motorcycles

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than others.

Motorcycle

A two-wheeled vehicle powered by an engine, used for transportation and recreational purposes.

Coffee

A popular beverage made by brewing roasted and ground beans of the Coffea plant.

  • Recognize the significance of specialization and trade in improving economic efficiency.
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SJ
Sands JustoOct 29, 2024
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