Table 2-4 Table 2-4 Shows the Number of Labor Hours Required to of Labor

question 30

Multiple Choice

Table 2-4

Table 2-4 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 2-4.If the two countries specialize and trade,who should export digital cameras?

• A) There is no basis for trade between the two countries.
• B) China
• C) South Korea
• D) They should both be importing digital cameras.

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Definitions:

Market Illiquidity

A situation in which an asset cannot be easily sold or exchanged for cash without a substantial loss in value.

Book-to-market Ratio

A valuation metric comparing the book value of a company to its market price.

Momentum

An investment strategy that involves buying securities that have had high returns over a certain period and selling those that have had poor returns, based on the belief that trends will continue.

Turnover

Turnover refers to the total volume of shares or securities traded within a particular timeframe or the rate at which inventory is sold and replaced in a business.