Table 3-19 Summary of the Gains from Trade

question 447

Multiple Choice

Table 3-19 Summary of the Gains from Trade
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-Refer to Table 3-19. The values in the table represent the amounts of lemonade and pizzas that Alice and Betty can produce in one week without and with specialization and trade. What are Alice and Betty's gains from specialization and trade?

• A)Alice gains 7 pitchers of lemonade and 10 pizzas, while Betty gains 13 pitchers of lemonade and 10 pizzas.
• B)Alice gains 200 pitchers of lemonade and 100 pizzas, while Betty gains 180 pitchers of lemonade and 180 pizzas.
• C)Alice gains 207 pitchers of lemonade and 110 pizzas, while Betty gains 193 pitchers of lemonade and 190 pizzas.
• D)Alice gains 400 pitchers of lemonade and 0 pizzas, while Betty gains 0 pitchers of lemonade and 300 pizzas.

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Definitions:

Leader-Follower Congruence

The degree to which leaders and their followers share common goals, values, and attitudes, leading to a harmonious and productive relationship.

Ethical Expectations

The norms and standards for ethical behavior that are anticipated in a specific context or organization.

Values-Based Culture

A corporate culture that emphasizes and prioritizes core values and ethical standards in its business operations and decision-making processes.

Normative Myopia

The short-sightedness in recognizing the long-term importance and influence of norms and ethical standards in decision-making.