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

question 75

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.
-The Dutch Disease had occurred in Netherlands because:

• A)the Netherlands government had borrowed heavily from the World Bank to meet its Balance of Payment deficits.
• B)the price of the primary commodities declined in the international market.
• C)the demand for natural gas exports from Netherlands increased substantially.
• D)the currency of Netherlands depreciated in the international market.
• E)the price of the commodities manufactured by Netherlands declined in the international market.

---

Definitions:

SSH

Secure Shell, a cryptographic network protocol used for secure connection over an unsecured network.

Telnet

A nonsecure application protocol that allows connection to a remote network device. Telnet uses port 23. Commonly replaced by the more secure SSH.

Network Devices

Hardware components used to connect computers or other electronic devices together so they can share files or resources, examples include routers, switches, and hubs.

Remote Assistance

A feature or service that allows a user to connect to another computer over a network or the internet to access or provide support.