Table 2-8 Table 2-8 Shows the Number of Labor Hours Required to of Labor

question 162

Multiple Choice

Table 2-8

Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
-Refer to Table 2-8.What is China's opportunity cost of producing one digital camera?

• A)0.04 pounds of wheat
• B)4 pounds of wheat
• C)25 pounds of wheat
• D)40 pounds of wheat

---

Definitions:

United States Treasury Securities

Debt securities issued by the U.S. government to fund its budget deficits and manage the national debt.

Open Market

A venue where buyers and sellers engage in the trade of commodities, securities, and other financial instruments under defined regulations.

Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, determined by central banking authorities.

Deposit Expansion Multiplier

The ratio that describes the potential increase in money supply through the banking system via fractional reserve banking.