Scenario 34

question 84

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.
Refer to Scenario 34.2.Ghana will be willing to trade cocoa for Egyptian corn if in the international market, 1 pound of cocoa can be exchanged for:

• A)more than one-eighth of a bushel of corn.
• B)less than one-sixth of a bushel of corn.
• C)more than one-fourth of a bushel of corn.
• D)less than one-fifth of a bushel of corn.
• E)more than one-tenth of a bushel of corn.

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Definitions:

Mann Act

a 1910 U.S. federal law, officially known as the White-Slave Traffic Act, originally intended to combat forced prostitution and human trafficking.

Prostitution

The practice or occupation of engaging in sexual activity with someone for payment.

Human Behavior

The range of actions and mannerisms exhibited by humans, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.

White Slave Traffic Act

Also known as the Mann Act, a United States federal law passed in 1910 aimed at preventing the transport of women across state lines for "immoral" purposes.