Table 24-3 The Table Below Pertains to Iowan, an Economy in Which

question 225

Multiple Choice

Table 24-3
The table below pertains to Iowan, an economy in which the typical consumer's basket consists of 4 pounds of pork and 3 bushels of corn.
-Refer to Table 24-3. The cost of the basket in 2012 was

• A)$108.
• B)$116.
• C)$112.
• D)$224.

---

Definitions:

Pauper Labor Fallacy

The incorrect belief that importing goods from countries with lower wage levels hurts the economy of a country with higher wage levels.

Sweatshop Labor Fallacy

The misconception that sweatshop labor is entirely harmful and provides no benefit to workers in developing countries.

Heckscher-Ohlin Theory

An economic theory that suggests countries export what they can most efficiently and abundantly produce.

Absolute Advantage

The ability of a country, company, or individual to produce a good or provide a service more efficiently than competitors.