Table 2.6

Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
-Refer to Table 2.6. If the two countries specialise and trade, who should export wheat?
A)There is no basis for trade between the two countries.
B)China
C)South Korea
D)They should both be exporting wheat.

Question

Table 2.6
  
Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
-Refer to Table 2.6. If the two countries specialise and trade, who should export wheat?
A)There is no basis for trade between the two countries. 
B)China 
C)South Korea 
D)They should both be exporting wheat.

Quizplus · Accepted Answer

According to Table 2.6, South Korea has a lower labor requirement to produce one kilo of wheat compared to China. Thus, South Korea should specialize in producing and exporting wheat, while China should specialize in producing digital cameras.

Table 2.6 Table 2.6 Shows the Number of Labour Hours Required to of Labour