Specialization can lead to an increase in the production of all goods only if Select one: O a. the two nations specialized in the production of goods. O b. each nation were to produce all goods. O c. the opportunity cost of producing goods differs between two nations. O d. neither country has a comparative advantage in the production of any good.

Specialization can lead to an increase in the production of all goods only if Select one: O a. the two nations specialized in the production of goods. O b. each nation were to produce all goods. O c. the opportunity cost of producing goods differs between two nations. O d. neither country has a comparative advantage in the production of any good.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 8P

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Brazil and Colombia can both produce either bananas or coffee. Brazil can produce either 16 pounds of co and 0 pounds of coffee. Colombia can produce either 20 pounds of coffee and 0 pounds of bananas or 4 Bananas (pounds) Coffee (pounds) Country Brazil 64 Colombia 40 20 The opportunity cost of producing 1 pound of bananas for Brazil is O 16 O 1 O 0.25 16 O 48 pounds of coffee.
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The idea that an action should be undertaken if and only if the benefits exceed the costs is known as the concept of Oeconomic efficiency. O public welfare maximization. marginal comparative advantage. O monetary construction of values.
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