Use the Following to Answer Questions

question 181

Multiple Choice

Use the following to answer questions:
Figure: Rice and Shirts
-(Figure: Rice and Shirts) Use the PPFs shown for the United States and India. If the United States and India specialize and trade, one country will trade away 20 pounds of rice in exchange for 20 shirts from the other. Compared with no trade, ______ will be able to consume ______ additional shirts, and _____ will be able to consume an additional ______ pounds of rice.

• A) the United States; 0; India; 8.6
• B) India; 5; the United States; 0
• C) the United States; 4; India; 8.6
• D) India; 8.6; the United States; 4

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Definitions:

Power

The ability of an individual or group to influence outcomes, control resources, or direct the behavior of others.

Countervailing Power

Countervailing power refers to the capability of a group or organization to counterbalance or neutralize the influence and power of another group.

Power Holder

An individual or entity that possesses control or authority over others within an organizational or societal context.

Exchange Relationship

A connection between people or organizations characterized by the mutual giving and receiving of resources or services.