Suppose the following table shows the number of labor hours needed to produce airplanes and automobiles in the United States and South Korea, but one of the numbers is unknown. Number of Hours to produce One Airplane Number of Hours to Produce One Auto South Korea 2000 ? United States 800 10 Without knowing the number of labor hours required to produce an auto in South Korea, you can’t figure out which country has the comparative advantage in which good. Can you give an example of a number for the empty cell of the table that would give the United States the comparative advantage in the production of airplanes? What about South Korea? Who has the absolute advantage in the production of airplanes? What about autos? What exact number would you have to place in the empty cell of the table for it to be impossible that trade between the United States and South Korea could benefit both nations?
Suppose the following table shows the number of labor hours needed to produce airplanes and automobiles in the United States and South Korea, but one of the numbers is unknown. Number of Hours to produce One Airplane Number of Hours to Produce One Auto South Korea 2000 ? United States 800 10 Without knowing the number of labor hours required to produce an auto in South Korea, you can’t figure out which country has the comparative advantage in which good. Can you give an example of a number for the empty cell of the table that would give the United States the comparative advantage in the production of airplanes? What about South Korea? Who has the absolute advantage in the production of airplanes? What about autos? What exact number would you have to place in the empty cell of the table for it to be impossible that trade between the United States and South Korea could benefit both nations?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 4SCQ: In Germany it takes three workers to make one television and four workers to make one video camera....
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Suppose the following table shows the number of labor hours needed to produce airplanes and automobiles in the United States and South Korea, but one of the numbers is unknown.
Number of Hours to produce One Airplane | Number of Hours to Produce One Auto | |
South Korea | 2000 | ? |
United States | 800 | 10 |
- Without knowing the number of labor hours required to produce an auto in South Korea, you can’t figure out which country has the
comparative advantage in which good. Can you give an example of a number for the empty cell of the table that would give the United States the comparative advantage in the production of airplanes? What about South Korea? - Who has the
absolute advantage in the production of airplanes? What about autos? - What exact number would you have to place in the empty cell of the table for it to be impossible that trade between the United States and South Korea could benefit both nations?
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