Table 2-6 Table 2-6 Shows the Output Per Week of Week

question 129

Multiple Choice

Table 2-6
Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-6.Which of the following statements is true?

• A)Lucy has an absolute advantage in making both products.
• B)James has an absolute advantage in making both products.
• C)Lucy has an absolute advantage in making wagons and James in making tricycles.
• D)James has an absolute advantage in making tricycles and Lucy in making wagons.

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Definitions:

Expectancy

In expectancy theory, the likelihood that if a person tried, the result would be better performance.

Autonomy

Independence, the ability to act and make decisions on one’s own without undue interference from management.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow that outlines a five-tier model of human needs, from basic physiological needs to self-actualization.