TABLE 1.1
Use the information in the table to answer the following question(s).

-Refer to Table 1.1.If trade takes place at Brazil's domestic price,________ snowboards will be required to obtain 1 digital camera.
A)4
B)2 and 2/3
C)1.25
D)0.25

Question

TABLE 1.1
Use the information in the table to answer the following question(s).
 
-Refer to Table 1.1.If trade takes place at Brazil's domestic price,________ snowboards will be required to obtain 1 digital camera.
A)4 
B)2 and 2/3 
C)1.25 
D)0.25

Quizplus · Accepted Answer

If trade takes place at Brazil's domestic price, the exchange rate between snowboards and digital cameras is determined by Brazil's opportunity cost. The opportunity cost of producing one digital camera in Brazil is 4 snowboards, hence 4 snowboards are required to obtain 1 digital camera.

TABLE 1.1 Use the Information in the Table to Answer the Following