Poland Requires 4 Hours of Labor to Produce 1 Ton

question 38

Multiple Choice

Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. The Czech Republic requires 6 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. Suppose that the international price of coal is 4 1/4 bushels of wheat per ton of coal. Which country is likely to have the larger gain from trade?

• A) Poland
• B) the Czech Republic
• C) Neither country has the larger gain.
• D) Both countries have the larger gain.

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Definitions:

Top-of-Mind Awareness

The first brand or product that comes to a consumer's mind when thinking about a particular industry or category.

Recall

The process of retrieving information or memories from past experience; in a business context, it often refers to a company's request to return a product due to the discovery of safety issues or product defects.

Brand Names

The names given to products or services by companies to distinguish them in the market, building recognition and loyalty among consumers.

AIDA Model

A marketing model that outlines the steps of consumer engagement: Attention, Interest, Desire, and Action, guiding marketers in crafting their messaging.