SCENARIO: CHILE AND ARGENTINA

question 99

Multiple Choice

SCENARIO: CHILE AND ARGENTINA
Chile and Argentina each produce jellybeans and peanut butter, using
Labor as their only resource.Each country has 1,000 hours of labor.In
Chile, an hour produces a pound of jellybeans and 2 hours produce a
Pound of peanut butter.In Argentina, an hour produces a pound of
Jellybeans and 3 hours produces a pound of peanut butter.When they do
Not trade with each other, Chile consumes 600 pounds of jellybeans and
200 pounds of peanut butter, and Argentina consumes 400 pounds of
Jellybeans and 200 pounds of peanut butter.
Reference: Ref 2­10
(Scenario: Chile and Argentina) What is the price of peanut butter in
Argentina before the two countries begin to trade with each other?

• A)1/3 pound of jellybeans per pound of peanut butter
• B)1/2 pound of jellybeans per pound of peanut butter
• C)2 pounds of jellybeans per pound of peanut butter
• D)3 pounds of jellybeans per pound of peanut butter

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Definitions:

Perceptual Set

A mental predisposition to perceive one thing and not another, influenced by expectations, emotions, culture, and previous experiences.

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear to be of different lengths because of converging parallel lines.

Basal Metabolic Rate

The rate at which the body uses energy while at rest to maintain vital functions such as breathing and keeping warm.

Set Point

A theory suggesting that an individual's body weight is maintained around a biologically determined point, with the body regulating metabolism to maintain weight around this point.