Table 2-10

-Refer to Table 2-10.This table shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
a. Which country has an absolute advantage in the production of digital cameras?
b. Which country has an absolute advantage in the production of wheat?
c. What is China's opportunity cost of producing one digital camera?
d. What is South Korea's opportunity cost of producing one digital camera?
e. What is China's opportunity cost of producing one kilo of wheat?
f. What is South Korea's opportunity cost of producing one kilo of wheat?
g. If each country specialises in the production of the product in which it has a comparative advantage,who should produce digital cameras?
h. If each country specialises in the production of the product in which it has a comparative advantage,who should produce wheat?

Question

Table 2-10
 
-Refer to Table 2-10.This table shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
a. Which country has an absolute advantage in the production of digital cameras?
b. Which country has an absolute advantage in the production of wheat?
c. What is China's opportunity cost of producing one digital camera?
d. What is South Korea's opportunity cost of producing one digital camera?
e. What is China's opportunity cost of producing one kilo of wheat?
f. What is South Korea's opportunity cost of producing one kilo of wheat?
g. If each country specialises in the production of the product in which it has a comparative advantage,who should produce digital cameras?
h. If each country specialises in the production of the product in which it has a comparative advantage,who should produce wheat?

Quizplus · Accepted Answer

The Answer of Table 2-10
 
-Refer to Table 2-10.This table shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
a. Which country has an absolute advantage in the production of digital cameras?
b. Which country has an absolute advantage in the production of wheat?
c. What is China's opportunity cost of producing one digital camera?
d. What is South Korea's opportunity cost of producing one digital camera?
e. What is China's opportunity cost of producing one kilo of wheat?
f. What is South Korea's opportunity cost of producing one kilo of wheat?
g. If each country specialises in the production of the product in which it has a comparative advantage,who should produce digital cameras?
h. If each country specialises in the production of the product in which it has a comparative advantage,who should produce wheat?

Table 2-10 -Refer to Table 2-10.This Table Shows the Number of Labour