Assignment Instructions/ Description
Which country has a comparative advantage in producing ethanol?Explain why both the United States and Brazil can gain from specialization and trade._______ a comparative advantage in producing ethanol because _______.A.The United States has; it can produce more ethanol than BrazilB.Both Brazil and the United States have; Brazil is almost self-sufficient in ethanol production and the United States is self-sufficient in ethanol productionC.Brazil has; it produces ethanol using sugar, which is cheaper to grow than cornD.Brazil has; it can produce a gallon of ethanol at a lower opportunity cost than the United StatesYour answer is correct.Both Brazil and the United States can gain from specialization and trade because ________.A.the United States would buy sugar from Brazil to make ethanol and use its corn to produce foodB.Brazil would get ethanol at a lower price from the United States and the United States would get other goods and services at a lower price from Brazil.C.Brazil would produce enough ethanol for both countries and the United States would allow some imports of ethanol from Brazil.D.the United States would get ethanol at a lower price from Brazil and Brazil would get other goods and services at a lower price from the United States.
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