The Table Given Below Shows the Number of Labor Hours

question 36

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. What is the opportunity cost of producing a bushel of corn in the United Kingdom? $$\begin{array} { | c | c | c | } \hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \\\hline \text { l umbrella } & 3.00 & 2.00 \\\hline \text { 1 bushel of corn} & 1.00 & 0.25 \\\hline\end{array}$$

• A)1/8 of an umbrella
• B)1/3 of an umbrella
• C)3 umbrellas
• D)8 umbrellas

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Definitions:

Markets

Platforms or venues where buyers and sellers meet to exchange goods, services, or financial instruments, determining prices through supply and demand.

Risk-Adjusted

A method or measurement that normalizes the performance of an investment by taking into account the amount of risk involved in producing its returns.

Mutual Fund Performance Measures

Metrics used to evaluate and compare the performance of mutual funds, including measures of risk, return, and the adjustment of performance for risk.

Nearly Efficient Markets

Markets where prices reflect all available information to some degree but may not always be perfectly efficient.