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

question 19

Multiple Choice

Scenario 20.2
Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana 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.
-Based on Scenario 20.2, which of the following terms of trade would benefit both countries?

• A)1 pound of cocoa is equal to 0.10 bushels of corn.
• B)1 pound of cocoa is equal to 2 bushels of corn.
• C)1 pound of cocoa is equal to 1 bushels of corn.
• D)1 pound of cocoa is equal to 0.5 bushels of corn.
• E)1 pound of cocoa is equal to 1.5 bushels of corn.

---

Definitions:

Stressor

An event, condition, or stimulus that causes stress or an adverse reaction in an individual.

Stress Reactions

The physical or psychological responses to perceived threats or challenges, which can affect an individual's health and well-being.

Extreme Heat

Conditions characterized by excessively high temperatures which can pose risks to health, environment, and infrastructure.

Hostile People

Individuals who display aggression, antagonism, or are confrontational in their interactions with others.