The Following Input-Requirements Data Are for Country A, a Capital-Abundant

question 25

Multiple Choice

The following input-requirements data are for country A, a capital-abundant country where they produce nothing but bread and wine using only capital and labor as inputs. Based on this information, which of the following statements is true? $$\begin{array} { | c | c | c | } \hline & 1 \text { pound of bread } & \text { 1 gallon of wine } \\\hline \text { Capital input } & 5 \text { units } & 20 \text { units } \\\hline \text { Labor input } & 4 \text { units } & 10 \text { units } \\\hline\end{array}$$

• A)The inputs are used in the same proportion in the production of both the goods.
• B)Bread is a relatively capital-intensive good.
• C)Wine is a relatively capital-intensive good.
• D)In the absence of trade, the wage rate is lower than the rental rate of capital in this country.

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Definitions:

McClelland's Learned Needs Theory

A psychological theory suggesting that individuals are motivated by three primary needs: achievement, affiliation, and power, which they learn over time.

Safety Need

A concept from Maslow's hierarchy of needs referring to an individual's need for security, protection, and freedom from fear or anxiety.

Socialized Power

A form of power wielded with the intention of promoting the common good rather than personal gain, often seen in leadership that prioritizes group goals.

Perceived Probability

An individual's subjective judgment regarding the likelihood of a particular event happening, which may not always align with the actual statistical probability.