Table 3-5 Assume That England and Spain Can Switch Between Producing Cheese

question 341

Multiple Choice

Table 3-5
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-5.If England and Spain each spends all its time producing the good in which it has a comparative advantage and the countries agree to trade 2 units of bread for 6 units of cheese,then England will consume

• A) 34 units of cheese and 2 units of bread and Spain will consume 6 units of cheese and 3 units of bread.
• B) 34 units of cheese and 2 units of bread and Spain will consume 16 units of cheese and 3 units of bread.
• C) 34 units of cheese and 12 units of bread and Spain will consume 6 units of cheese and 3 units of bread.
• D) 34 units of cheese and 12 units of bread and Spain will consume 16 units of cheese and 3 units of bread.

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Definitions:

Performance Increases

Improvements in the efficiency, effectiveness, or quality of work produced by an individual or team.

Overpaid Worker

An employee who receives compensation significantly above the market rate for their role or performance level.

Equity

The principle of fairness and justice in the distribution of benefits, resources, and responsibilities.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to focus efforts and resources.