Table 2-9 Table 2-9 Shows the Number of Labor Hours Required to of Labor

question 9

Multiple Choice

Table 2-9

Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-9.If the two countries specialize and trade, who should export canoes?

• A)There is no basis for trade between the two countries.
• B)Guatemala
• C)Honduras
• D)They should both be exporting canoes.

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Definitions:

Male Poverty Rate

The proportion of the male population living below the poverty line, measured by the income level considered necessary for basic living standards in a given country or area.

Disparity

The existence of inequalities or differences between groups, regions, or countries, often in terms of economic, social, or health outcomes.

Transitory Income

Income that is temporary or not expected to continue at the same level in future periods, such as one-time bonuses or inheritances.

Permanent Income

A theory suggesting that people's spending choices are better determined by their long-term average income rather than their current income.