Table 2-14 Table 2-14 Shows the Number of Labor Hours

question 386

Multiple Choice

Table 2-14
Table 2-14 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-14. Does either Ireland or Scotland have an absolute advantage and if so, in what product?

• A) Scotland only has an absolute advantage in guitars.
• B) Ireland only has an absolute advantage in guitars.
• C) Scotland has an absolute advantage in both products.
• D) Ireland only has an absolute advantage in motorcycles.

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Definitions:

Bureaucratic Organisation

A structured, formal organization characterized by fixed rules, a clear hierarchy, and detailed procedures and protocols to manage activities.

Mature Organisation

An organization that has developed over time to a stage where it enjoys stable growth, well-established systems, and processes, and a clear sense of identity.

Systems Thinking

An analytical approach that focuses on understanding how components of a system interact with each other within a complete entity or larger system.

Contingency Thinking

The mindset of preparing for and adapting to unforeseen or variable circumstances in decision-making.