Table 2-21 -Refer to Table 2-21

question 132

Essay

Table 2-21
$$\begin{array} { | l | c | c | } \hline & \text { Digital Carner a } & \text { Wheat (bushels) } \\\hline \text { China } & 100 \text { hours } & 5 \text { hours } \\\hline \text { South Korea } & 90 \text { hours } & 3 \text { hours } \\\hline\end{array}$$
-Refer to Table 2-21.This table shows the number of labor hours required to produce a digital camera and a bushel of wheat in China and South Korea.

h.Show the consumption points after trade on each country's production possibilities frontier.Label these points "B" for China and "J" for South Korea.
i.Has trade made the two countries better off? Explain your answer.

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Definitions:

Say's Law

A principle that asserts that supply creates its own demand, meaning production of goods will naturally lead to their consumption.

Income

Funds acquired frequently, either from performing work or via investment profits.

Production

The method of producing goods and services by mixing labor, materials, and technology.

Savings

Money set aside from current income for future use, often to accumulate wealth or for specific future expenditures.