Scenario 20.2
Suppose labor productivity differences are the only determinants of comparative advantage, and both Egypt and Ghana 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 20.2, 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.
Correct Answer:
Verified
Q53: The first panel in the following figure
Q54: The first panel in the following figure
Q55: Scenario 20.2
Suppose labor productivity differences are the
Q56: The first panel in the following figure
Q57: The following table shows that in one
Q59: The first panel in the following figure
Q60: Scenario 20.2
Suppose labor productivity differences are the
Q61: The table below shows the quantity demanded
Q62: The table below shows the quantity demanded
Q63: The table below shows the quantity demanded
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