Exhibit 29-2 -Suppose the Relative Price of Computers and Rice in Japan

question 157

Multiple Choice

Exhibit 29-2
-Suppose the relative price of computers and rice in Japan is 2 computers per unit of rice. The relative price of computers and rice in Korea is 1/2 computer per unit of rice. If the two countries trade without government restrictions, transportation costs are negligible, and markets are competitive, then the likely terms of trade will fall in the range of

• A)3 computers per unit of rice.
• B)5 computers per unit of rice.
• C)1/4 computer per unit of rice.
• D)1 computer per unit of rice.
• E)2 computers per unit of rice

---

Definitions:

Anticipatory Socialization

The process where individuals learn and adopt the norms and behaviors of a role they aspire to occupy in the future.

Reciprocal Obligations

Mutual expectations and duties between two parties, especially in a work environment where employees and employers depend on each other's actions.

Psychological Contract

The unwritten set of expectations between an employer and an employee regarding mutual obligations.

Unrealistically Low Expectations

Expectations that are set significantly below a realistic assessment of achievable outcomes, often leading to underperformance or missed opportunities.