Given the Following Ricardo-Type Table Showing the Amount of Labor

question 13

Multiple Choice

Given the following Ricardo-type table showing the amount of labor input required to produce one unit of output of each of the two goods in each of the two countries:
$\begin{array}{lll}&\underline{\text { Shirts }}&\underline{\text { Machines }}\\\text { France } & 3 \text { days } & 5 \text { days } \\\text { Germany } & 2 \text { days } & 4 \text { days }\end{array}$

If the wage rate in France is €60 per day (i.e., 60 euros per day) , what is the upper limit to the wage rate per day in Germany (which also uses the euro) that is compatible with two-way trade between the countries?

• A) €40
• B) €48
• C) €75
• D) €90

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Definitions:

Hydrogen Ions

Positively charged ions, or protons, denoted as H+, which are fundamental in determining the acidity or pH level of solutions.

Thylakoid Membrane

The site within chloroplasts that contains chlorophyll and where the light-dependent reactions of photosynthesis occur.

Stroma

The supportive tissue or matrix of an organ, as in the stroma of the ovary, or the dense fluid within the chloroplast where the Calvin cycle occurs in photosynthesis.

Thylakoid Compartment

A membranous structure within chloroplasts of plant cells and cyanobacteria, containing chlorophyll and other pigments for photosynthesis.