SCENARIO: HOME'S WILLINGNESS TO TRADE WHEAT FOR CLOTH

question 24

Multiple Choice

SCENARIO: HOME'S WILLINGNESS TO TRADE WHEAT FOR CLOTH
Home has a comparative advantage in wheat, and Foreign has a
Comparative advantage in cloth.Once trade occurs, Home produces
1,500 bushels of wheat, and Foreign produces 1,000 yards of cloth.The
Following table shows the amount of wheat that Home is willing to trade
To acquire more cloth.

Reference: Ref 2­13
(Scenario: Home's Willingness to Trade Wheat for Cloth) Suppose that
Home's export price rose from 0.5 bushel of wheat per yard of cloth in
2009 to a bushel of wheat per yard of cloth in 2010.Which of the
Following statements is TRUE?

• A)Home's situation had greatly improved in 2010.
• B)Home's situation had deteriorated in 2010.
• C)Home's situation was the same as it was in 2009.
• D)Home's situation had slightly improved in 2010.

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Stakeholder Analysis

A process of identifying and assessing the interests and influence of people or groups that have a stake in a project or organization's success.

Analytical

Relating to or using analysis or logical reasoning to evaluate or solve problems.

Incremental

Pertaining to a gradual, step-by-step approach to change, rather than significant shifts or complete overhauls.