Table 2-5 -Refer to Table 2-5.This Table Shows the Number of Labor

question 26

Essay

Table 2-5

-Refer to Table 2-5.This table shows the number of labor hours required to produce a digital cameras 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 pound of wheat?
f.What is South Korea's opportunity cost of producing one pound of what?
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:

Assets

Economic resources or owned valuables that an individual, company, or country possesses, which are expected to provide future benefits.

Dividends

A corporation allocates a segment of its profits to its shareholders in the form of payments, distributing its earnings among them.

Millions

A numerical value representing one million units of a given item or currency, often used to describe large quantities or financial figures.

Current Assets

Holdings that are likely to be transformed into cash, merchandised, or expended either within the span of one year or throughout the standard operating period of the enterprise, should that exceed one year.