Scenario 20.2 Suppose Labor Productivity Differences Are the Only Determinants of Comparative

question 62

Multiple Choice

Scenario 20.2
Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa.
-Refer to Scenario 20.2. Ghana will be willing to trade cocoa for Egyptian corn if in the international market, 1 pound of cocoa can be exchanged for:

• A) more than one-eighth of a bushel of corn.
• B) less than one-sixth of a bushel of corn.
• C) more than one-fourth of a bushel of corn.
• D) less than one-fifth of a bushel of corn.
• E) more than one-tenth of a bushel of corn.

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Definitions:

Correlate

To have a mutual relationship or connection, in which one thing affects or depends on another.

Openness

Refers to the trait of being open to new experiences, ideas, and changes in one's environment.

Active Imagination

A technique in analytical psychology where individuals engage with their unconscious mind through imagination.

Intellectual Curiosity

The desire to learn, understand, and explore intellectual content and concepts beyond what is required or immediately necessary.