Table 2.6 Table 2.6 Shows the Number of Labour Hours Required to of Labour

question 9

Multiple Choice

Table 2.6

Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
-Refer to Table 2.6. Does either China or South Korea have an absolute advantage and if so, in what product?

• A)South Korea has an absolute advantage in wheat.
• B)China has an absolute advantage in wheat.
• C)South Korea has an absolute advantage in both products.
• D)China has an absolute advantage in both products.

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Definitions:

Redeemed

Redeemed refers to the action of exchanging a financial instrument, such as a bond or preferred stock, for cash or another form of value, often at its maturity or a predetermined price.

Bond

A promissory note issued by a business or a governmental unit.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Offer Price

The price at which a seller is willing to sell a security or commodity.