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. The international price of wheat must fall between which of the following two prices?
A) between 1/6 ton and 1/4 ton of coal per bushel of wheat
B) between 1/4 ton and 1/3 ton of coal per bushel of wheat
C) between 1/3 ton and 1.5 tons of coal per bushel of wheat
D) between 4 tons and 6 tons of coal per bushel of wheat
Correct Answer:
Verified
Correct Answer:
Verified
Q17: With trade, a country will maximize its
Q18: Suppose a nation increases the quantity of
Q19: If the opportunity cost is constant (the
Q20: (Figure: Indifference Curves) Of the following points
Q21: Chile and Argentina each produce jellybeans and
Q23: Assume that two countries (Home and Foreign)
Q24: A comparison of wages and value-added in
Q25: International trade equilibrium occurs where:<br>A) there is
Q26: (Figure: International Trade Equilibrium) Which is the
Q27: The pre-trade Home equilibrium will provide the