The Table Given Below Shows the Number of Labor Hours

question 34

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. The Rest of the World has an absolute advantage in the production of _____. $$\begin{array} { | c | c | c | } \hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \\\hline \text { l umbrella } & 3.00 & 2.00 \\\hline \text { 1 bushel of corn} & 1.00 & 0.25 \\\hline\end{array}$$

• A)both corn and umbrella
• B)only umbrella
• C)only corn
• D)neither corn nor umbrella

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Definitions:

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership's stake.