Table 2-11

Table 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-11.Does either Ireland or Scotland have an absolute advantage and if so, in what product?
A)Scotland only has an absolute advantage in producing guitars.
B)Ireland only has an absolute advantage in producing guitars.
C)Scotland has an absolute advantage in producing both products.
D)Ireland only has an absolute advantage in producing motorcycles.

Question

Table 2-11
  
Table 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-11.Does either Ireland or Scotland have an absolute advantage and if so, in what product?
A)Scotland only has an absolute advantage in producing guitars. 
B)Ireland only has an absolute advantage in producing guitars. 
C)Scotland has an absolute advantage in producing both products. 
D)Ireland only has an absolute advantage in producing motorcycles.

Quizplus · Accepted Answer

Scotland has a lower number of labor hours required to produce both motorcycles (8 hours vs. Ireland's 10 hours) and guitars (5 hours vs. Ireland's 6 hours). Therefore, Scotland has an absolute advantage in producing both products.

Table 2-11 Table 2-11 Shows the Number of Labor Hours Required to of Labor