Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
Having an absolute advantage means that Brazil can produce more coffee than Peru using the same resources. However, this does not mean Brazil should only produce coffee without considering opportunity costs. Opportunity cost is what you give up when you choose one option over another. For example, if Brazil can produce either 10 units of coffee or 5 units of wheat, choosing to produce coffee means it gives up the chance to make those 5 units of wheat. Therefore, Brazil should weigh the benefits of producing coffee against the amount of wheat it could have produced, deciding based on which choice provides the most value for its resources.
Detailed Explanation
This statement is false. Other options are incorrect because This answer suggests that Brazil should only focus on coffee.
Key Concepts
Opportunity Costs
Comparative Advantage
Resource Allocation
Topic
Understanding Opportunity Costs
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.