Table 3-3 -Refer to Table 3-3

question 8

Multiple Choice

Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}$
-Refer to Table 3-3.If the US and Europe trade according to the principle of comparative advantage, Europe will export what product to the US?

• A)cars
• B)both aeroplanes and cars
• C)aeroplanes
• D)Europe should buy both products from the US

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Definitions:

Government Bonds

Debt securities issued by a government to finance its expenditures, offering a return in the form of periodic interest payments.

Broad Portfolio

An investment strategy involving a wide range of assets to diversify risk.

Long-Term Investors

Individuals or entities that invest in assets with the expectation of holding them for an extended period.

Steady Rate

A constant pace or level of progress, maintaining uniformity over a specified time without abrupt changes or fluctuations.