If the Opportunity Cost of Producing Cheese Is Higher in Greece

question 91

Multiple Choice

If the opportunity cost of producing cheese is higher in Greece than it is in Italy, then:

• A) Greece should specialize in producing cheese.
• B) Italy should specialize in producing cheese.
• C) both Greece and Italy should produce cheese.
• D) Greece gives up fewer goods to produce cheese than Italy does.
• E) Italy has a better economy than Greece.

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Definitions:

Centralization

The accumulation of decision-making power at the higher echelons of an organization.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and interoperability of products or services across different areas or sectors.

Formalization

The extent to which organizations standardize behavior through rules, procedures, protocols, and formal structures.

Vertical Differentiation

The structuring of an organization into levels of hierarchy, often to distinguish between varying degrees of authority and responsibility.