Table 2-11 -Refer to Table 2-11.This Table Shows the Number of Labor

question 41

Essay

Table 2-11

-Refer to Table 2-11.This table shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
a.Which country has an absolute advantage in the production of cell phones?
b.Which country has an absolute advantage in the production of lumber?
c.What is Estonia's opportunity cost of producing one cell phone?
d.What is Finland's opportunity cost of producing one cell phone?
e.What is Estonia's opportunity cost of producing one board foot of lumber?
f.What is Finland's opportunity cost of producing one board foot of lumber?
g.If each country specializes in the production of the product in which it has a comparative advantage,who should produce cell phones?
h.If each country specializes in the production of the product in which it has a comparative advantage,who should produce lumber?

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Definitions:

Dutch Tourists

Refers specifically to travelers from the Netherlands who visit other countries for leisure, business, or other purposes.

Swedish Kroner

The official currency of Sweden, often represented by the code SEK.

Dollar Price

Dollar price refers to the cost or value of a good or service expressed in terms of the amount of U.S. dollars required to purchase it.

Demand For German Goods

The desire or need for products made in Germany by consumers both within the country and internationally.