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

question 57

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. If the two countries specialise and trade, who should export guitars?

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

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Definitions:

Journal Entries

The basic method used in accounting to record transactions, involving debits and credits to appropriate accounts.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.

Bank Statement

A document issued by a bank detailing the transactions in an account over a specific period, showing deposits, withdrawals, and balances.

Cash Receipts

The total amount of cash collected by a business within a specific period, including revenues from sales, loan proceeds, interest income, and other sources.