A French Worker Can Produce Either 4 Barrels of Wine

question 39

Multiple Choice

A French worker can produce either 4 barrels of wine or 16 shirts a week;and Italian worker can produce either 10 barrels of wine or 20 shirts a week.

• A)After the countries begin to trade,one barrel of wine will cost between four and eight shirts.
• B)France has an absolute advantage in both wine and shirts.
• C)France will export shirts and import wine.
• D)France has an absolute advantage in making shirts.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market.

Expected Return

The anticipated profit or loss from an investment over a specified period, based on historical or projected performance data.

Overland

Transportation or travel across land, often referring to trade routes or journeys that avoid sea or air transit.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.