Final answer:
Colombia would have an absolute advantage in coffee production if it's the only country that can produce coffee. Absolute advantage refers to the capability of a country to produce a good more efficiently than other countries, often due to natural endowments like geography. The correct answer is D. Absolute Advantage.
Step-by-step explanation:
If Colombia is the only country in the world that can grow and produce coffee, Colombia would have an absolute advantage in coffee production. An absolute advantage occurs when a country is able to produce a good using fewer resources than other countries, usually due to its natural endowments. For example, countries like Saudi Arabia in oil production and the United States with its rich farmlands for growing corn and wheat have absolute advantages in those areas due to geography which allows easier extraction or farming processes. This could lead to beneficial trade as countries trade products that they can produce more efficiently.
In this scenario, Colombia would have an absolute advantage in coffee production as it can produce it when no one else can, making it the sole provider of this commodity. This advantage is often tied to geographical factors, such as climate and soil conditions, which are favorable for coffee growing in Colombia. Trade occurs not only due to absolute advantage but also due to comparative advantage, where a country produces goods at a lower opportunity cost compared to others, even if it does not have an absolute advantage.
Therefore, the correct answer to the student's question is D. Absolute Advantage.