Given the Information in the Table Above, If the Home

question 7

Multiple Choice

Given the information in the table above, if the Home economy suffered a meltdown, and the Unit Labor Requirements doubled to 20 for cloth and 40 for widgets then home should

• A) export cloth.
• B) export widgets.
• C) export both and import nothing.
• D) export and import nothing.
• E) export widgets and import cloth.

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Definitions:

Publicly Traded

A company is described as publicly traded when its shares are bought and sold on public stock exchanges.

Statement of Cashflow

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Preferred Shares

A type of stock that provides a fixed dividend and has priority over common stock in the event of a company's liquidation.