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Consider the following two countries: United States and Brazil. Assume they produce only two goods. The following table reflects the number of units of each
Consider the following two countries: United States and Brazil. Assume they produce only two goods. The following table reflects the number of units of each good that can be produced in an hour. United States Brazil Cars 12 10 Computers 4 6. 11. What is Brazil's opportunity cost of making computers? 12. Who has the comparative advantage in making cars? Who has the comparative advantage in making computers? Explain. 13. Which country should produce which good and why? (Use the concept of comparative advantage to explain your answer.) 14. If the terms of trade are such that 4 cars can be traded for 3 computers, are these terms beneficial for: a. The United States? b. Brazil?The study of economics can be best summed up as: Group of answer choices the objective of obtaining equal distribution of resources for all people. the various methods that are employed to eliminate the scarcity of resources. the allocation of scarce resources to their most productive and efficient uses for society. the use of government policies to meet individuals' wants and desires
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