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Consider the Following Table on Labor Hours Needed Per Unit

question 60

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Consider the following table on labor hours needed per unit of output: Consider the following table on labor hours needed per unit of output:   Ignoring nonlabor inputs,which of the following statements is correct? A)  All of the following are correct. B)  The opportunity cost of a computer equals 1/4 unit of wine in Italy. C)  The opportunity cost of a computer equals 1/2 unit of wine in France. D)  Italy has a comparative advantage in computers. E)  Italy has a comparative advantage in wine. Ignoring nonlabor inputs,which of the following statements is correct?


Definitions:

Private Capital Flows

Financial resources transferred between countries by private sector entities through direct investments, portfolio investments, and other forms of capital movements.

Direct Foreign Investment

An individual or company from one nation investing in business interests or assets in a different country, which includes starting up operations or buying business holdings.

International Finance Corporation

A member of the World Bank Group focused on private-sector development in less developed countries.

Infrastructure Loans

Financial borrowing intended for the construction, improvement, or maintenance of essential public works like roads, bridges, and utilities.

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