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.Scotland has a comparative advantage in the production of
A)both products.
B)guitars.
C)motorcycles.
D)neither product.

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.Scotland has a comparative advantage in the production of
A)both products. 
B)guitars. 
C)motorcycles. 
D)neither product.

Quizplus · Accepted Answer

Scotland has a lower labor hour requirement for motorcycles than Ireland, indicating a comparative advantage in motorcycle production. There is no clear comparative advantage for guitar production as the labor hour requirements are the same for both countries. Therefore, the answer is C) motorcycles.

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