Table 2-12
| | Digital Camera | Wheat (bushels) |
| China | 100 hours | 5 hours |
| South Korea | 90 hours | 3 hours |
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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table