The reason that most of the coffee that is consumed in the United States comes from Colombia is that
A) Colombia has an absolute advantage in producing coffee relative to the United States.
B) Colombia has a comparative advantage in producing coffee relative to the United States.
C) coffee cannot be grown in the United States.
D) government trade disincentives regarding Colombian coffee make such trade possible.
Answer: B
You might also like to view...
A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?
A) a marginal statement B) a macroeconomic statement C) a normative statement D) a positive statement E) a statement that violates rational choice
The Keynesian idea that the government can achieve a specific level of GDP by changing government spending and taxing was known as
a. fine-tuning b. supply-side stimulation c. classical manipulation d. hunting for the Phillips curve e. crowding out