Suppose Country A, a Labor-Abundant Country, Produces Only Wheat and Cloth

question 47

Multiple Choice

Suppose country A, a labor-abundant country, produces only wheat and cloth. The following equations illustrate the prices and costs of wheat and cloth in the country, where the numbers indicate the amounts of labor and land needed to produce a unit of wheat and cloth. 'w' is the wage rate and 'r' is the rental rate of land. Price of wheat = 1w + 2r
Price of cloth = 2w + 1r
If the initial prices of wheat and cloth are $3 per unit, the labor cost per unit of wheat output is_____ and the rental cost per unit of wheat output is _____.

• A)$2; $3
• B)$1; $2
• C)$3; $2
• D)$2; $1

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Definitions:

Empathy

An emotional understanding and sharing of another person's feelings, allowing one to respond with an appropriate emotional reaction.

Basic Needs

Fundamental requirements necessary for individuals to survive and maintain health, such as food, water, shelter, and safety.

Neglect

Failure to provide adequate care or attention, often resulting in harm or risk of harm.

Goodness Of Fit

A concept referring to how well an individual's temperament matches with their environment, impacting their psychological development and well-being.