One country (call it A) can make 1,000 shirts with 50 hours of labor. A second country (call it C) can make 1,000 shirts with 75 hours of labor. a) Calculate productivity for Countries A and C. Which one is higher? b) Suppose workers in Country A get paid $30 per hour and workers in Country C get paid $10 per hour. In which country is it more expensive to make a shirt (assuming that all other costs are the same between the two countries)?
One country (call it A) can make 1,000 shirts with 50 hours of labor. A second country (call it C) can make 1,000 shirts with 75 hours of labor. a) Calculate productivity for Countries A and C. Which one is higher? b) Suppose workers in Country A get paid $30 per hour and workers in Country C get paid $10 per hour. In which country is it more expensive to make a shirt (assuming that all other costs are the same between the two countries)?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2. One country (call it A) can make 1,000 shirts with 50 hours of labor. A second country (call it C) can make 1,000 shirts with 75 hours of labor. a) Calculate productivity for Countries A and C. Which one is higher? b) Suppose workers in Country A get paid $30 per hour and workers in Country C get paid $10 per hour. In which country is it more expensive to make a shirt (assuming that all other costs are the same between the two countries)?
Transcribed Image Text:2.
One country (call it A) can make 1,000 shirts with 50 hours of labor. A second country (call it C) can make 1,000 shirts with 75 hours of labor. a) Calculate
productivity for Countries A and C. Which one is higher? b) Suppose workers in Country A get paid $30 per hour and workers in Country C get paid $10 per hour.
In which country is it more expensive to make a shirt (assuming that all other costs are the same between the two countries)?
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