Suppose You Can Type a Paper in Two Hours or Mow

question 244

Multiple Choice

Suppose you can type a paper in two hours or mow the lawn in four hours, while it takes your friend Ann eight hours to type a paper or two hours to mow the lawn. Which of the following is true?

• A) You have a comparative advantage in typing.
• B) You have a comparative advantage in mowing the lawn.
• C) You and Ann could save time if you mowed her lawn while she typed your paper.
• D) You and Ann cannot gain from specialization and trade.

Recognize the importance of key success factors (KSFs) in achieving competitive advantage.

Identify the various international operations strategies and their characteristics.

Describe the role and steps involved in operations management.

Distinguish between examples and non-examples of transnational firms.

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Definitions:

Central Banks

Institutions that manage the currency, money supply, and interest rates of a state or country.

Political Control

The influence or authority exerted by a government or political group over its citizens, economic system, or societal structures.

Inflation Rates

The percentage increase in the price level of goods and services over a period, reducing purchasing power.

Excess Reserves

Bank reserves that exceed the required minimum amount that financial institutions must hold in reserve against deposit liabilities.