Assume the Following Conditions: in the United States It Takes

question 5

Multiple Choice

Assume the following conditions: In the United States it takes 5 units of resources to produce a ton of potatoes and 10 to produce a ton of coal.In Canada it takes 6 units of resources to produce a ton of potatoes and 9 to produce a ton of coal.According to the theory of absolute advantage, ________.

• A)the United States should export potatoes to Canada and import coal from Canada
• B)the United States should export coal to Canada and import potatoes from Canada
• C)the United States should import both potatoes and coal from Canada, while concentrating on production of more valuable goods
• D)there would be no basis for trade

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Definitions:

Status Inconsistency

A situation where an individual's social position has elements that are ranked differently in terms of status.

Median

The middle value in a data set where half the numbers are higher and half are lower, or a central point or value.

Affluent Parents

Parents who possess a high level of wealth, facilitating an ability to provide ample resources for their children's upbringing and education.

Modern Potlatch

A contemporary interpretation of the traditional potlatch ceremony, often referring to excessive spending and consumption practices.