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Home Has a Comparative Advantage in Wheat, and Foreign Has

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Home has a comparative advantage in wheat, and Foreign has a comparative advantage in cloth. Once trade occurs, Home produces 1,000 bushels of wheat, and Foreign produces 1,000 yards of cloth. The following table shows the amount of wheat that Home is willing to supply and Foreign is willing to buy at various international prices. Home has a comparative advantage in wheat, and Foreign has a comparative advantage in cloth. Once trade occurs, Home produces 1,000 bushels of wheat, and Foreign produces 1,000 yards of cloth. The following table shows the amount of wheat that Home is willing to supply and Foreign is willing to buy at various international prices.   In equilibrium, how many bushels of wheat will Foreign import? A)  900 bushels B)  700 bushels C)  500 bushels D)  300 bushels In equilibrium, how many bushels of wheat will Foreign import?


Definitions:

Direct Labour Standards

Benchmarks for the amount of labor time that is expected to be necessary to produce a unit of product or to complete a process.

Total Cost

The complete cost of production, including both fixed and variable costs.

Standard Wage Rate

The predefined hourly rate paid to employees for their labor, often based on industry standards, experience, and job role.

Direct Labour Hours

The total number of hours worked by employees that are directly involved in the production process of goods or services.

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