2. Table 1 Output possibilities for South Korea and Japan Country South Korea Japan Output per worker per day Tons of steel 80 20 Laptops 40 20 a. Referring to Table 1, what is the opportunity cost of one laptop in Japan? What is the op what is the opportunity cost of one laptop in South Korea? b. According to the principle of absolute advantage, should Japan trade with South Korea? Why? I c. According to the principle of comparative advantage, what product should Japan export? What product should South Korea export? Why? d. With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each laptop? Why? e. With international trade, what would be the maximum number of laptops that Japan would be willing to export to South Korea in exchange for each ton of steel? Why?

2. Table 1 Output possibilities for South Korea and Japan Country South Korea Japan Output per worker per day Tons of steel 80 20 Laptops 40 20 a. Referring to Table 1, what is the opportunity cost of one laptop in Japan? What is the op what is the opportunity cost of one laptop in South Korea? b. According to the principle of absolute advantage, should Japan trade with South Korea? Why? I c. According to the principle of comparative advantage, what product should Japan export? What product should South Korea export? Why? d. With international trade, what would be the maximum amount of steel that South Korea would be willing to export to Japan in exchange for each laptop? Why? e. With international trade, what would be the maximum number of laptops that Japan would be willing to export to South Korea in exchange for each ton of steel? Why?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 5PA

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Similar questions

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