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

question 110

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. 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:

Scattergraph

A graphical representation that plots individual data points, often used to identify trends or correlations in data analysis.

Least Square Regression

A statistical method used to determine the line of best fit by minimizing the squared differences between observed values and the values predicted by the line.

Independent Variable

A variable in an experiment or model that is manipulated or changed to assess its effects on a dependent variable.

Scattergraph

A graphical representation used in cost accounting to show the relationship between a cost (dependent variable) and its driver (independent variable).