Table 2-16
-Refer to Table 2-16.This table shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
a. Which country has an absolute advantage in the production of motorcycles?
b. Which country has an absolute advantage in the production of guitars?
c. What is Ireland's opportunity cost of producing one motorcycle?
d. What is Scotland's opportunity cost of producing one motorcycle?
e. What is Ireland's opportunity cost of producing one guitar?
f. What is Scotland's opportunity cost of producing one guitar?
g. If each country specializes in the production of the product in which it has a comparative advantage,who should produce motorcycles?
h. If each country specializes in the production of the product in which it has a comparative advantage,who should produce guitars?
Definitions:
Richard M. Nixon
37th President of the United States, known for his involvement in the Watergate scandal and eventual resignation.
Panama Canal
A significant engineering project completed in 1914, connecting the Atlantic and Pacific Oceans and significantly impacting global trade routes.
Spiro Agnew
The 39th Vice President of the United States, serving under President Richard Nixon, and known for his resignation due to accusations of bribery and tax fraud.
Dam Projects
Large-scale engineering projects involving the construction of dams across rivers or waterways for purposes such as irrigation, flood control, water supply, or hydroelectric power generation.
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