Table 2-14 Table 2-14 Shows the Number of Labor Hours

question 375

Multiple Choice

Table 2-14
Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-14. If the two countries specialize and trade, who should export motorcycles?

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

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company’s use of its assets in generating sales revenue.

Sales Revenue

The gross revenue is the entirety of income that comes from selling products or services, prior to deducting any costs.

Total Invested Capital

The sum of a company's equity and debt capital, representing the total amount of capital invested in the business.

Profit Margin

A financial performance ratio that shows the percentage of profit a company makes for each dollar of sales.