(Table: Output in the United States and China) Using the Data

question 78

Multiple Choice

(Table: Output in the United States and China) Using the data in the table, what will happen to the U.S. labor force after trade occurs with China?

• A) U.S. labor will move from apparel to agriculture, where its marginal productivity is higher.
• B) U.S. jobs in apparel will be exported to China, wheat exports will create additional jobs in agriculture, and the value of output produced by U.S. labor will increase.
• C) The value of output produced by U.S. labor will increase.
• D) U.S. labor will move from apparel to agriculture, where its marginal productivity is higher. U.S. jobs in apparel will be exported to China, wheat exports will create additional jobs in agriculture, and the value of output produced by U.S. labor will increase.

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Definitions:

Price/Earnings Ratio

A metric that measures the relationship between a company's stock price and its per-share earnings, providing insight into the market's valuation of the company.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Cash Coverage Ratio

A liquidity ratio that measures a company’s ability to pay off its debt with cash and cash equivalents, indicating financial health.

Operating Activities

The section of a company's cash flow statement that reveals the cash generated or used in the company’s primary business operations.