Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brazil can produce one unit of sugar cane for one unit of labor and one iPod for eight units of labor, and China and can

Brazil can produce one unit of sugar cane for one unit of labor and one iPod for eight units of labor, and China and can produce one unit of sugar cane for two units of labor and one iPod for four units of labor. Which is of the following is true?

A. Before trade, China's opportunity cost of one unit of sugar can is two iPods.

B. China has an absolute advantage in sugar cane production

C. Both parties benefit if they specialize and trade at terms of one unit of sugar cane for two iPods

D. With trade, Brazil should specialize in sugar cane and China in iPods

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Economics

Authors: Stephen Smith

6th Edition

0199583587, 9780199583584

More Books

Students also viewed these Economics questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago