Table 2.9 -Refer to Table 2.9. This Table Shows the Number of Shows

question 117

Essay

Table 2.9

-Refer to Table 2.9. This table shows the number of labour hours required to produce a motorcycle and a guitar in Ireland and Scotland.
a.Which country has an absolute advantage in the production of motorcycles?
b.Which country has an absolute advantage in the production of guitars?
c.What is Ireland's opportunity cost of producing one motorcycle?
d.What is Scotland's opportunity cost of producing one motorcycle?
e.What is Ireland's opportunity cost of producing one guitar?
f.What is Scotland's opportunity cost of producing one guitar?
g.If each country specialises in the production of the product in which it has a comparative advantage, who should produce motorcycles?
h.If each country specialises in the production of the product in which it has a comparative advantage, who should produce guitars?
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Definitions:

Expected Price Level

The anticipated average cost of goods and services in the future, based on current trends, policies, and economic conditions.

Actual Price Level

The current average level of prices for goods and services in an economy, reflecting inflation or deflation.

Corrective Actions

Steps taken to fix a problem or eliminate a cause of nonconformities in processes or products.

Expected Price Level

The anticipation or forecast of future prices overall, impacting saving and spending decisions of consumers and businesses.