The Table Given Below Shows the Units of Land and Labor

question 5

Multiple Choice

The table given below shows the units of land and labor required to produce a unit of bread and cheese respectively in country X. If country X is land-abundant, the opening up of free trade would result in: $$\begin{array} { | c | c | c | } \hline & \text { 1 urit of Bread } & \text { 1 unit of Cheese } \\\hline \text { Labor Input } & 5 \text { units } & 20 \text { units } \\\hline \text { Land Input } & 4 \text { units } & 10 \text { units } \\\hline\end{array}$$

• A)a decline in the production of both bread and cheese in the country.
• B)an increase in the production of bread but a decline in the production of cheese in the country.
• C)an increase in the production of both bread and cheese in the country but production of bread will rise at a lesser pace than the production of cheese.
• D)a decline in the production of bread but an increase in the production of cheese in the country.

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Definitions:

Dollar-Weighted Return

A method of calculating an investment's return that accounts for the timing and magnitude of cash flows into and out of the investment.

Dollar-Weighted Return

A method of calculating an investment's return that considers the timing and amount of capital inflows and outflows.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional stock.

Sharpe Measure

A measure for calculating the performance of an investment compared to a risk-free asset, after adjusting for its risk, often used to understand the risk-adjusted return.