In a Ricardo-Type Model, If Portuguese Workers Can Produce Three

question 18

Multiple Choice

In a Ricardo-type model, if Portuguese workers can produce three times as much wine per Day as English workers but only twice as much cloth per day as English workers, then, if Portuguese wages are 30 euros per day, the upper limit to English wages per day is __________. (Assume 1 euro = £1.)

• A) £10
• B) £15
• C) £60
• D) £90

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Definitions:

Least Skilled

Referring to individuals with the minimal level of competencies, abilities, or expertise in a particular area or field.

Greatest Effort

The highest level of effort that an individual can possibly exert towards achieving a particular goal.

Social Loafing

The occurrence where people put in less effort towards achieving an objective when they are part of a team, as opposed to when they are working by themselves.

Personally Accountable

The responsibility an individual takes for their actions, including the consequences and outcomes of those actions.