Figure 11-14 Figure 11-14 Shows the Optimal Input Combinations

question 67

Multiple Choice

Figure 11-14 Figure 11-14 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China.
-Refer to Figure 11-14. Consider the following statements:
a. For each country, the marginal product per dollar spent on labor equals to the marginal product per dollar spent on capital.
b. The price of labor is relatively higher in the United States than in China and the price of capital is relatively lower in the United States than in China.
c. The price of labor and the price of capital are relatively higher in the United States than in China.
Based on the figure, which of the statements above is true?

• A) All of the statements are true.
• B) statements a and c only
• C) statements a and b only
• D) statements b and c only

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Definitions:

Toxic Chemicals

Substances that can cause harmful effects on living organisms and the environment when released or exposed.

Mnemonic Device

A Mnemonic Device is a learning technique that aids information retention by associating complex information with simple, easily recallable cues.

LEARN

An acronym that typically stands for Listen, Explain, Acknowledge, Recommend, and Negotiate, often used in educational and medical communication strategies.

Moral Distress

Occurs when the individual knows the ethically correct action to take but is unable to take the action because of internal or external barriers.