Scenario 20

question 81

Multiple Choice

Scenario 20.2 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 20.2.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:

Wages High

Refers to compensation or earnings that are at the upper end of the pay scale, often above the average level within a particular job or industry.

Self-Fulfilling Prophecy

A self-fulfilling prophecy is an outlook or prediction that manifests into reality because of the interaction between belief and action.

Cultural Capital

A term coined by sociologist Pierre Bourdieu referring to non-financial social assets, like education, intellect, style of speech, or dress, that can promote social mobility.

Economic Capital

Financial assets and resources that an individual or organization possesses, which can be used to generate wealth or facilitate production.