Table 2-16 -Refer to Table 2-12.This Table Shows the Number of Labor

question 71

Essay

Table 2-16

-Refer to Table 2-12.This table shows the number of labor hours required to produce a digital camera and a bushel 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 bushel of wheat?
f.What is South Korea's opportunity cost of producing one pound of wheat?
g.If each country specializes in the production of the product in which it has a comparative advantage, who should produce digital cameras?
h.If each country specializes in the production of the product in which it has a comparative advantage, who should produce wheat?

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Definitions:

Farming Business

The operation of cultivating land, raising crops, and sometimes raising livestock, for the purpose of producing food and other agricultural products for consumption and sale.

Agricultural Products

Items produced through farming and agriculture, including crops, livestock, and other raw materials such as grains, fruits, and vegetables.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a specified period.

Quantity Supplied

The amount of a commodity that producers are willing and able to sell at a given price level in a given time period.