Table 2-20 Table 2-20 Shows the Number of Labor Hours

question 63

Multiple Choice

Table 2-20
Table 2-20 shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand.
-Refer to Table 2-20. What is Thailand's opportunity cost of producing one pound of rice?

• A) 60 wristwatches
• B) 20 wristwatches
• C) 5 wristwatches
• D) 0.05 units of a wristwatch

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Definitions:

Expected Return

The anticipated profit or loss of an investment, calculated by taking the average of possible returns weighted by their probabilities.

Economic Scenarios

Hypothetical projections used in financial planning and economic modelling to understand the potential impacts of various macroeconomic conditions or policy changes.

Probability

A measure of the likelihood of a specific outcome or event occurring, often expressed as a percentage or a ratio.

Systematic Risk

Also known as market risk, it refers to the risk inherent to the entire market or market segment and cannot be eliminated through diversification.