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

Appreciate the relevance of comparison and goal setting in influencing individual motivation.

Understand the hierarchical nature of needs in specific motivational theories.

Apply motivational theories to predict the effectiveness of different needs in managerial and sales positions.

Differentiate between elastic, inelastic, and unitary demand.

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Definitions:

Equilibrium Constant

A dimensionless number that describes the ratio of the concentration of products to reactants at equilibrium in a reversible chemical reaction.

Product Concentration

The amount of product formed in a reaction per unit volume or mass of the reaction mixture.

Equilibrium

A state in which opposing forces or influences are balanced, often used in the context of chemical reactions or physical processes reaching a state of balance.