Question : Table 2-21 : 1244990

Table 2-21

165) Refer to Table 2-21. 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?

Table 2-30

Wristwatch

Rice (bushels)

Japan

200 hours

10 hours

Thailand

180 hours

6 hours

166) Refer to Table 2-30. This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand.

a.Which country has an absolute advantage in the production of wristwatches?

b.Which country has an absolute advantage in the production of rice?

c.What is Japan’s opportunity cost of producing one wristwatch?

d.What is Thailand’s opportunity cost of producing one wristwatch?

e.What is Japan’s opportunity cost of producing one pound of rice?

f.What is Thailand’s opportunity cost of producing one pound of rice?

g.If each country specializes in the production of the product in which it has a comparative advantage, who should produce wristwatches?

h.If each country specializes in the production of the product in which it has a comparative advantage, who should produce rice?

167) Suppose in Belgium, the opportunity cost of producing a trombone is 8 clarinets. In Denmark, the opportunity cost of producing a trombone is 6 clarinets.

a. What is the opportunity cost of producing a clarinet for Belgium?

b. What is the opportunity cost of producing a clarinet for Denmark?

c. Which country has a comparative advantage in the production of clarinets?

d. Which country has a comparative advantage in the production of trombones?

Table 2-31

Cell Phone

Lumber (board feet)

Estonia

20 hours

5 hours

Finland

18 hours

4 hours

168) Refer to Table 2-31. 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?