Table 1 Shows the Units of Output a Worker Can

question 46

Multiple Choice

Table 1 shows the units of output a worker can produce per month in Australia and Korea. ?
$\begin{array}{|l|l|l|}\hline & \text { Food } & \text { Electronics } \\\hline \text { Australia } & 20 & 5 \\\hline \text { Korea } & 8 & 2 \\\hline\end{array}$
?
Refer to table 1. The opportunity cost of 1 unit of electronics in Korea is

• A) 4 units of food.
• B) 1/4 units of food.
• C) 2 units of food.
• D) 1/2 of a unit of food.

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Definitions:

Multifactor Model

A financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices.

Unanticipated Inflation

Inflation that occurs when the actual rate exceeds what was expected, potentially eroding purchasing power and investment returns.

Security Market Line

A graphical representation of the Capital Asset Pricing Model, showing the relationship between the expected return of a security and its systemic risk as measured by beta.

APT

APT, or Arbitrage Pricing Theory, is a financial model that estimates the returns on an asset based on its risk in relation to multiple risk factors.