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Question
Table 2-8| One Digital Camera | Wheat (per pound) | |
| China | 100 hours | 4 hours |
| South Korea | 60 hours | 3 hours |
Table 2-8 shows the number of labor hours required to produce a digital camera and a pound of wheat in China and South Korea.
Refer to Table 2-8. Does either China or South Korea have an absolute advantage and if so, in what product?
A) South Korea has an absolute advantage in wheat.
B) China has an absolute advantage in wheat.
C) South Korea has an absolute advantage in both products.
D) China has an absolute advantage in digital cameras.
Answer
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Related questions
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Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
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Which of the following would be categorized as an opportunity cost?
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b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above