Scenario 34

question 21

Multiple Choice

Scenario 34.2 Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and 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.
Based on Scenario 34.2, which of the following terms of trade would benefit both countries?

• A)1 pound of cocoa is equal to 0.10 bushels of corn
• B)1 pound of cocoa is equal to 2 bushels of corn
• C)1 pound of cocoa is equal to 1 bushels of corn
• D)1 pound of cocoa is equal to 0.5 bushels of corn
• E)1 pound of cocoa is equal to 1.5 bushels of corn

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Definitions:

Conventional Environmental Cost

Expenses related to the damage or depletion of natural resources, waste management, and environmental compliance traditionally recognized by businesses.

Oil-Spill Clean Up

The process and activities involved in removing or minimizing oil contaminants from the environment following an oil spill.

Equipment Damage Prevention

Strategies and practices aimed at reducing the likelihood of damage to machinery and equipment.

Environmental Management Accounting

The identification, collection, estimation, analysis, internal reporting, and use of materials and energy flow information, environmental cost information, and other cost information for both conventional and environmental decision-making within an organization.