Figure 11-14 Figure 11-14 Shows the Optimal Input Combinations for the Production

question 239

Multiple Choice

Figure 11-14

Figure 11-14 shows the optimal input combinations for the production of a given quantity of cotton in the United States and in China.
-Refer to Figure 11-14.Which of the following could explain why the United States and China use different input combinations to produce a given quantity of cotton and yet, each country produces that quantity at the lowest possible cost?

• A)because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in the United States
• B)because the prices of inputs are not the same for the two countries: labor is relatively lower-priced and capital is relatively higher priced in China
• C)because the United States has more sophisticated technology and therefore is more efficient in cotton production
• D)because the marginal product per dollar spent on capital yields a higher return in the United States than in China

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Definitions:

Set Point

A theory suggesting that the body regulates its weight and energy balance through internal controls.

Basal Metabolic Rate

The amount of calories needed to maintain bodily functions while at rest, referred to as metabolism.

Social and Cultural Factors

These refer to the influences that derive from the society and culture one belongs to, affecting behaviors, beliefs, and attitudes.

Fried Caterpillars

A dish consisting of caterpillars that have been cooked in oil, considered a delicacy or traditional food in some cultures.