Table 2.8 Table 2.8 Shows the Number of Labour Hours Required to of Labour

question 57

Multiple Choice

Table 2.8

Table 2.8 shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2.8. If the two countries specialise and trade, who should export guitars?

• A)There is no basis for trade between the two countries.
• B)Ireland
• C)Scotland
• D)They should both be exporting guitars.

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Definitions:

Intense Market Competition

A market characteristic where numerous firms vie aggressively for market share, leading to innovations and competitive pricing.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they receive by selling it at the market price.

Price Level

The average of the current prices of goods and services in an economy, which can be compared over time to assess inflation or deflation.

Value Creation

The process through which businesses or organizations generate added value for customers, stakeholders, or society at large, often leading to competitive advantage.