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

question 145

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 Scotland's opportunity cost of producing one guitar?

• A)0.25 motorcycle
• B)4 motorcycles
• C)12 motorcycles
• D)16 motorcycles

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not directly related to the company's day-to-day operations.

Cash Flow

Cash flow is the net amount of cash and cash-equivalents moving into and out of a business, indicating its liquidity, financial health, and ability to fund operations.

Land

An asset category in accounting representing real estate or property owned by a business, excluding buildings or structures on the property.

Investing Activities

Financial transactions related to the purchase or sale of long-term assets and investments, as reported in a company's cash flow statement.