The Table Given Below Shows the Number of Labor Hours

question 26

Multiple Choice

The table given below shows the number of labor hours required to produce 1 gallon of wine and 1 pound of cheese in the U.S. and France. If the U.S. and France engage in free trade with each other, the international price of wine will lie between _____ and _____. $$\begin{array} { l c c } \hline \text { Labor hours to make: } & \text { In the United States } & \text { In France } \\\hline \text { 1 gallon of wine } & 4.00 & 1.00 \\\text { 1 pourd of cheese } & 1.00 & 2.00 \\\hline\end{array}$$

• A)1 pound of cheese per gallon; 4 pounds of cheese per gallon
• B)0.5 pounds of cheese per gallon; 4 pounds of cheese per gallon
• C)1 pound of cheese per gallon; 2 pounds of cheese per gallon
• D)0.5 pounds of cheese per gallon; 2 pounds of cheese per gallon

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Definitions:

Culture

The shared beliefs, values, norms, and practices that characterize a group of people and are transmitted from one generation to the next.

Mental Set

A psychological tendency to approach problems in a certain way due to past experiences and habits, which can facilitate or hinder the discovery of solutions.

Means-End Analysis

A problem-solving technique that involves breaking down the problem into smaller parts and addressing each part to achieve the final goal.

Prototypical Idealization

The process of creating ideal models or examples in one's mind that represent the most typical or classic features of a particular category or concept.