Given the Following Diagram That Shows the Relationship Between the Price

question 1

Multiple Choice

Given the following diagram that shows the relationship between the price of good X relative to the price of good Y (P_X/P_Y) and the wage rate relative to the return to capital or rental rate on capital (w/r) , and also indicates relative factor prices in country A [(w/r) _A], relative factor prices in country B [(w/r) _B], relative autarky goods prices in country A [(P_X/P_Y) _A], relative autarky goods prices in country B [(P_X/P_Y) _B], and (w/r) [where the (P_X/P_Y) associated with (w/r) is the highest (P_X/P_Y) on the graph]:

At (w/r) values less than (w/r) , __________ is the relatively labor-intensive good and, at (w/r) values greater than (w/r) , __________ the relatively labor-intensive good.

• A) good X; good Y is
• B) good X; good X also is
• C) good Y; good Y also is
• D) good Y; good X is

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Definitions:

Carbanion

A negatively charged ion (anion) of carbon that carries a lone pair of electrons, making it extremely reactive in organic reactions.

Hydride Shift

A rearrangement reaction where a hydride ion (H-) moves from one carbon atom to another within a molecule.

Methyl Shift

A rearrangement reaction where a methyl group in a molecule moves from one carbon atom to an adjacent carbon.

Zaitsev's Rule

A rule in organic chemistry that predicts the more substituted alkene as the major product in elimination reactions.