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:

Questionnaire-Taking Style

The individual manner or approach a person adopts when responding to questions in a survey or questionnaire.

Degree of Association

A statistical measure that describes the level or strength of a relationship between two or more variables.

Correlation

A mathematical indicator showing how much two or more variables move in relation to each other.

Consistent Measurement

Involves the use of precise and stable methods or instruments to obtain reliable data across different instances or over time.