The table below shows the number of labour hours required to produce a digital ...
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The table below shows the number of labour hours required to produce a digital cameras OR a kilogram of wheat in China and South Korea.
| Digital Camera | Wheat (kilograms) |
China | 100 hours | 5 hours |
South Korea | 90 hours | 3 hours |
Answer each question below using the table above:
a. Which country has an absolute advantage in the production of digital cameras? [0.25 marks]
b. Which country has an absolute advantage in the production of wheat? [0.25 marks]
c. What is China’s opportunity cost of producing one digital camera? [0.25 marks]
d. What is South Korea’s opportunity cost of producing one digital camera? [0.25 marks]
e. If each country specialises in the production of the product in which it has a comparative advantage, who should produce digital cameras? [0.5 marks]
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