The Table Given Below Shows the Number of Labor Hours

question 31

Multiple Choice

The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. Which of the following statements is true? $$\begin{array} { | c | c | c | } \hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \\\hline \text { l umbrella } & 3.00 & 2.00 \\\hline \text { 1 bushel of corn} & 1.00 & 0.25 \\\hline\end{array}$$

• A)The United Kingdom has a comparative advantage in the production of corn.
• B)The United Kingdom has an absolute advantage in the production of umbrellas.
• C)The United Kingdom has a comparative advantage in the production of umbrellas.
• D)The United Kingdom has a comparative advantage in the production of both the goods.

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Definitions:

Junk Bonds

High-yield but high-risk bonds issued by companies or entities with lower credit ratings, indicating a higher risk of default.

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Bonds that pay interest only when the issuer has sufficient earnings, providing a variable income stream based on the issuer's profitability.