Hank Requires 1 Hour to Cut the Grass and 3

question 34

Multiple Choice

Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?

• A) Hank has a lower opportunity cost of cutting the grass.
• B) Holly has a comparative advantage in cutting the grass.
• C) Hank has a comparative advantage in both cutting the grass and cleaning the house.
• D) Hank has an absolute advantage in both cutting the grass and cleaning the house.
• E) Hank and Holly both have a comparative advantage in cutting the grass.

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Definitions:

Organization Development (OD)

A field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.

Planned Change

A deliberate and systematic effort to alter an organization's processes, structure, or culture to achieve a specific goal or outcome.

Competitive Conflict

Situations where individuals or groups compete for resources, recognition, or success in a manner that can lead to tension or discord.

Win-Lose

A competitive strategy or outcome in negotiations where one party's gain is exactly balanced by another party's loss.