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

question 120

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. What is Ireland's opportunity cost of producing one motorcycle?

• A)0.2 guitar
• B)5 guitars
• C)8 guitars
• D)32 guitars

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Definitions:

Corporations

are legal entities that are separate from their owners, providing limited liability protection, and have the ability to own assets, incur liabilities, and sell stock.

Special Purpose Equipment

Equipment that is designed and built for a specific task or function, which is not easily adaptable for other uses.

Common Stock

An equity security that denotes ownership within a corporation and grants the owner voting rights on company issues as well as eligibility to receive dividends.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.