Mexico and Canada Produce Both Oil and Apples Using Labour

question 113

Multiple Choice

Mexico and Canada produce both oil and apples using labour only.A barrel of oil is produced with 4 hours of labour in Mexico and 8 hours of labour in Canada.A bushel of apples is produced with 8 hours of labour in Mexico and 12 hours of labour in Canada.Canada has

• A)an absolute advantage in oil production.
• B)an absolute advantage in apple production.
• C)a comparative advantage in oil production.
• D)a comparative advantage in apple production.
• E)none of the above.

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Definitions:

LMX Differentiation

The variation in the quality of relationships between leaders and members within a team, impacting team dynamics and member outcomes.

Group Harmony

The degree of agreement, peace, and unity within a group, facilitating cooperative and smooth interactions.

Social Exchange Theory

A conceptual framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Norm Of Reciprocity

A social expectation that people will respond to each other in kind, returning benefits for benefits and responding with either indifference or hostility to harms.