Suppose There Are Several Countries That Are Efficient at Producing

Multiple Choice

Suppose there are several countries that are efficient at producing coffee beans and Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it is inefficient at producing electronics. Because of this, Brazil sells its coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of

A) supply and demand.
B) absolute advantage.
C) a monopoly.
D) exchange controls.
E) comparative advantage.