Scenario 20.2 Suppose Labor Productivity Differences Are the Only Determinants of Comparative

question 75

Multiple Choice

Scenario 20.2
Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana produce only corn and cocoa. In Egypt, 10 bushels of corn or 15 pounds of cocoa can be produced in a day. In Ghana, one day of labor can be used to produce either 2 bushels of corn or 8 pounds of cocoa.
-The Dutch Disease had occurred in Netherlands because:

• A)the Netherlands government had borrowed heavily from the World Bank to meet its Balance of Payment deficits.
• B)the price of the primary commodities declined in the international market.
• C)the demand for natural gas exports from Netherlands increased substantially.
• D)the currency of Netherlands depreciated in the international market.
• E)the price of the commodities manufactured by Netherlands declined in the international market.

Understand the role of education and propaganda in postwar American society.

Grasp how the civil rights movement and international perceptions of American social policies were influenced by Cold War dynamics.

Understand the concept of learned helplessness and its development.

Recognize the role of self-control in managing impulses and its impact on health and success.

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Definitions:

Common Stockholder

An individual or entity that owns shares in a company's common stock, giving them the right to vote at shareholders' meetings and to receive dividends.

Proxy

An authorization to represent someone else, especially in the context of voting shares of a company.

Shareholder Authority

The rights and powers that shareholders have within a company, including voting on key issues and decisions.

Cumulative Voting

A voting system that allows shareholders to allocate all of their votes to one candidate or spread them among multiple candidates during board elections.