225 in a World with Two Products, Wheat (W) and Coffee

question 234

Multiple Choice

225. In a world with two products, wheat (W) and coffee (C) , nation Alpha produces wheat and nation Beta produces coffee. Nation Alpha prefers an exchange rate of 1W = 2C, and nation Beta prefers an exchange rate of 1W = 1C. The exchange rate preferred by nation

• A) Alpha will prevail if world demand for coffee is great relative to its supply.
• B) Alpha will prevail if world demand for wheat is weak relative to its supply.
• C) Beta will prevail if world demand for coffee is great relative to its supply.
• D) Beta will prevail if world demand for wheat is great relative to its supply.

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Definitions:

Production Cycle

The sequence of steps involved in producing a good or service, from the initial concept or design to the final product delivery.

Sales Concept

A marketing strategy that prioritizes making sales and considers customer needs as secondary, focusing on aggressive sales techniques.

Sustainability Perspective

An approach to developing, producing, and managing products and services with attention to their environmental impact and the conservation of resources for future generations.

Age of Consumerism

A period characterized by an increase in the consumption of goods and services by individuals, reflecting changes in societal values and attitudes towards material wealth.