China Has Developed a Comparative Advantage in the Production of Children's

question 37

Multiple Choice

China has developed a comparative advantage in the production of children's toys.The source of this comparative advantage is

• A)superior process technology.
• B)a large supply of unskilled workers and relatively little capital.
• C)investment in capital used to produce toys.
• D)a large supply of natural resources.

---

Definitions:

Maturity Risk

Refers to the risk associated with the length of time until the debt securities reach their date of maturity, affecting their price and interest rates.

Risk Premiums

The additional returns that an investor expects to receive from an investment to compensate them for higher risk.

Earning Power

An indication of a company's ability to generate profit from its operations, often used by investors to assess financial health.

Inflation

The rate at which the typical cost levels of goods and services elevate, undermining the power to buy.