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

question 147

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. What is China's opportunity cost of producing 1 kilogram of wheat?

• A)0.04 units of a digital camera
• B)0.05 units of a digital cameras
• C)25 digital cameras
• D)40 digital cameras

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Definitions:

Inflationary Gap

A situation where the total demand in an economy exceeds the total supply, leading to an increase in the general price level or inflation.

Depression

A prolonged period of significant economic downturn characterized by a substantial decline in output and employment, usually more severe than a recession.

Federal Budget

An annual statement of the United States government's expenditures and revenues, detailing the allocation of resources among various federal agencies and programs.

Aggregate Demand

The sum of desires for goods and services in an economy, assessed at an established overall price level and during a distinct period.