Question

Suppose there are several countries that are efficient at producing coffee beans and Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it is inefficient at producing electronics. Because of this, Brazil sells its coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of ________.a. supply and demand
b. absolute advantage
c. a monopoly
d. exchange controlse. comparative advantage

Answer 1

Answer:

e. comparative advantage

Explanation:

As the opportunity cost of Brazil to produce coffee beans is lower than other countries it can sale their production to a gain and then use it to acquire the electronics on which is not as efficient.

Brazil has a comparative advantage producing coffee beans. Thus, is better for the global economy for brazil to produce coffee beans instead of electronics.