As the Workforce in a Country with a Comparative Advantage

question 31

Multiple Choice

As the workforce in a country with a comparative advantage in labor-intensive products becomes more educated, the country's comparative advantage for the production of those labor-intensive goods shifts toward countries that have:

• A)lower quantities of cheap labor relative to the other factors of production.
• B)less capital for production.
• C)higher quantities of cheap labor relative to the other factors of production.
• D)more capital for production.

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Definitions:

Comparison Universe

A benchmark or group of benchmarks that portfolios are compared against to evaluate their performance or risk characteristics.

Mutual Funds

Investment funds that pool money from multiple investors to buy a diversified portfolio of stocks, bonds, or other securities.

Astronomy

The scientific study of celestial bodies, including stars, planets, comets, and galaxies, and phenomena that originate outside the Earth's atmosphere.

Sharpe Measure

A ratio designed to measure the risk-adjusted return of an investment, comparing its excess return over the risk-free rate to its standard deviation.