Suppose an American Worker Can Make 50 Pairs of Gloves

question 128

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.On the other hand,a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day.The opportunity cost of one pair of gloves is:

• A) 6 radishes for the United States and 2 radishes for Bangladesh.
• B) 60 radishes for the United States and 20 radishes for Bangladesh.
• C) 1/6 radishes for the United States and ½ radishes for Bangladesh.
• D) 6,000 radishes for the United States and 2,000 radishes for Bangladesh.

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform framework for international commerce.

Express Contract

A contract in which the terms and conditions are clearly stated and agreed upon by all parties, either verbally or in writing.

Finders Fee

A commission paid to an intermediary or the facilitator of a transaction.

Essential Terms

Fundamental conditions and stipulations in a contract that are crucial for its validity and enforcement.