Posted by cheryl on Sunday, November 13, 2011 at 9:22am.
Suppose that there are 10 million workers in Canada and South Korea and each worker in Canada and South Korea can produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain a year, whereas a South Korean worker can produce 5 tonnes of grain a year. The following table shows the production of grain and cars for the two countries, Canada and South Korea.
For this situation, construct a table outlining the opportunity costs of producing grain and cars in Canada and South Korean.
(b) Graph the production possibilities frontier of the Canadian and South Korean economies.
(c) For Canada, what is the opportunity cost of a car? For Canada, what is the opportunity cost of grain? For South Korea, what is the opportunity cost of a car? For South Korea, what is the opportunity cost of grain?
(d) Which country has an absolute advantage in producing cars? Which country has an absolute advantage in producing grain?
(e) Which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain?
No one has answered this question yet.
Answer this Question
Related Questions
statistics - Suppose that there are 10 million workers in Canada and South Korea...
Socials Studies (URGENT) - 1. Why did Canada go to war in Korea and why was this...
Geography - Compare and contrast the societies, governments, and economies of ...
economics - Can anyone get me started on this? A country has 2 regions, the ...
Labor Econ - Can anyone get me started on this? A country has 2 regions, the ...
History Essay - How does this sound so far? It is the introduction to an essay ...
INB - what are the business habits of South Korea’s ideological beliefs, ...
religion in south korea - what role does south korea play in their daily lives?
social studies - what do th usa and korea have in common They are both ...
economics - This table shows the number of labor hours required to produce a ...
For Further Reading
