Suppose That a Worker in Taiwan Can Make 2 TVs

question 174

Essay

Suppose that a worker in Taiwan can make 2 TVs or 10 pairs of shoes per week, and a worker in Korea can make 3 TVs or 20 pairs of shoes per week.
a.In what sense do TVs and shoes cost less in Korea than in Taiwan?
b.In what sense do TVs cost less in Taiwan than in Korea?
c.If Taiwan and Korea were to engage in trade, which country would export which good?
d.How would the answer to the above question change if a worker in Korea could make 4 TVs per week?

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Definitions:

Microgram

A unit of mass equal to one millionth of a gram.

Milliliter

A unit of volume in the metric system, equal to one thousandth of a liter.

Discontinue

To stop using a product or halt a process or treatment, often on a permanent basis.

NPO

An abbreviation for "nil per os," a medical instruction meaning to withhold oral food and fluids from a patient for a specific period.