QUESTION 4

What is a labor abundant economy?

		A higher level of capital per worker
		A lower level of resources per worker
		Production that require a high level of capital
		Production that requires a low level of capital

QUESTION 6

What is the purchasing power parity theory?

		Theory that states that the same commodity in two countries will sell for the same amount when measured in the same currency
		Theory that states that different commodity in two countries will sell for the same amount when measured in the same currency
		Theory that stated the exchange rate will adjust to equality the price levels of two countries
		Theory that states that the same commodity in two countries will sell for the same amount when measured in different currencies