Sven Has a Comparative Advantage Over Alice in Cooking but Not

question 53

Multiple Choice

Sven has a comparative advantage over Alice in cooking but not in doing the laundry.Which of the following must be true?

• A) Sven must have an absolute advantage in both cooking and doing the laundry.
• B) Sven has a lower opportunity cost in doing the laundry.
• C) Sven has an absolute advantage in doing the laundry.
• D) Alice must have an absolute advantage in cooking.
• E) Sven must have a lower opportunity cost than Alice for cooking.

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Definitions:

Process-Driven Organisations

Organizations that focus on the systems and procedures that deliver their products or services to ensure efficiency and quality.

Process Re-Engineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Work Process

The structured set of activities and tasks undertaken by individuals or teams to produce a specific outcome or product in a professional setting.

Michael Hammer

A thought leader and author best known for his work on business process reengineering, which rethinks and radically redesigns business processes to achieve dramatic improvements in productivity and efficiency.