Figure 11-14 Figure 11-14 Shows the Optimal Input Combinations for the Production

question 15

Multiple Choice

Figure 11-14

Figure 11-14 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China.
-Refer to Figure 11-14.Consider the following statements:
A.For each country, the marginal product per dollar spent on labor equals to the marginal product per dollar spent on capital.
B.The price of labor is relatively higher in the United States than in China and the price of capital is relatively lower in the United States than in China.
C.The price of labor and the price of capital are relatively higher in the United States than in China.
Based on the figure, which of the statements above is true?

• A)All of the statements are true.
• B)statements a and c only
• C)statements a and b only
• D)statements b and c only

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Definitions:

Atoll

A curved to roughly circular reef that encloses a shallow, inner lagoon and low islands.

Continental Crust

The thick, granitic, and less dense part of the Earth's crust that forms the continents and continental shelves.

Mediterranean Sea

A sea connected to the Atlantic Ocean, surrounded by the Mediterranean region and almost completely enclosed by land, playing a crucial role in human history through trade and cultural exchange.

Persian Gulf

A marginal sea of the Indian Ocean situated between Iran and the Arabian Peninsula.