Use the Following to Answer Question(s): Production Possibilities in Alphaland

question 106

Multiple Choice

Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

• A) Alphaland has an absolute advantage in the production of computers.
• B) Omegaland has an absolute advantage in the production of cars.
• C) A nation that can produce all goods with an absolute advantage would not benefit from trade.
• D) Because absolute advantage is determined by the amount of output per worker, it is not possible to determine if either country has an absolute advantage without more information.

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Definitions:

LMX Theory

Leadership Member Exchange Theory, which suggests that leaders develop unique one-to-one relationships with each of the people reporting to them, affecting outcomes like job satisfaction and performance.

Exchange Relationship

Interaction between two parties involving the provision of goods, services, or sentiments in return for something of value.

LMX

Leadership-Member Exchange, a theory focusing on the dyadic relationships between leaders and followers, influencing many outcomes in the organizational context.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.