Table 2-5 Table 2-5 Shows the Number of Labor Hours

question 188

Multiple Choice

Table 2-5
Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.If the two countries specialize and trade,who should export lumber?

• A)There is no basis for trade between the two countries.
• B)Estonia
• C)Finland
• D)They should both be exporting lumber.

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Definitions:

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A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.

Well-Diversified

A portfolio strategy involving the mix of different investments to reduce exposure to risk.

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A scale for determining the level of fluctuation or consistent risk in a security or portfolio compared with the overall market.

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The additional return an investor expects to receive for taking on additional risk compared to a risk-free asset.