Table 2.6

Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
-Refer to Table 2.6. If the two countries specialise and trade, who should export digital cameras?
A)There is no basis for trade between the two countries.
B)China
C)South Korea
D)They should both be importing digital cameras.

Question

Table 2.6
  
Table 2.6 shows the number of labour hours required to produce a digital camera and a kilo of wheat in China and South Korea.
-Refer to Table 2.6. If the two countries specialise and trade, who should export digital cameras?
A)There is no basis for trade between the two countries. 
B)China 
C)South Korea 
D)They should both be importing digital cameras.

Quizplus · Accepted Answer

According to Table 2.6, China has a lower number of labour hours required to produce a digital camera compared to South Korea. This means China has a comparative advantage in producing digital cameras and should export them to South Korea while South Korea should focus on producing wheat. Therefore, option B is the best choice.

Table 2.6 Table 2.6 Shows the Number of Labour Hours Required to of Labour