Figure 3-25
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier
-Refer to Figure 3-25.Colombia should specialize in the production of
A)coffee and import soybeans.
B)soybeans and import coffee.
C)both goods and import neither good.
D)neither good and import both goods.

Question

Figure 3-25
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier  
-Refer to Figure 3-25.Colombia should specialize in the production of
A)coffee and import soybeans. 
B)soybeans and import coffee. 
C)both goods and import neither good. 
D)neither good and import both goods.

Quizplus · Accepted Answer

Colombia should specialize in the production of coffee and import soybeans if it has a comparative advantage in coffee production, meaning it can produce coffee more efficiently than soybeans compared to other countries.

Figure 3-25 Chile's Production Possibilities Frontier