SCENARIO: RELATIVE PRICES AND TRADE LEVELS

question 88

Multiple Choice

SCENARIO: RELATIVE PRICES AND TRADE LEVELS
Home has a comparative advantage in wheat, and Foreign has a
Comparative advantage in cloth.Once trade occurs, Home produces
1,000 bushels of wheat, and Foreign produces 1,000 yards of cloth.The
Following table shows the amount of wheat that Home is willing to supply
And Foreign is willing to buy at various international prices.
(Scenario: Relative Prices and Trade Levels) How many bushels of wheat
Will Foreign import?

• A)900 bushels
• B)700 bushels
• C)500 bushels
• D)300 bushels

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Definitions:

Allowance Factor

A factor used in planning and estimation to account for potential deviations from standard conditions or expected performance.

Normal Time

The amount of time typically required to complete a process or task under normal conditions, often used in planning and scheduling.

Standard Time

The established timeframe set to complete a specific task or process under normal conditions.

Labour Standards

The established amount of time required to perform a task, based on measurements of work performance, used for planning and payroll purposes.