Suppose that a worker in Taiwan can make 2 TVs or 10 pairs of shoes per week, and a worker in Korea can make 3 TVs or 20 pairs of shoes per week.
a.In what sense do TVs and shoes cost less in Korea than in Taiwan?
b.In what sense do TVs cost less in Taiwan than in Korea?
c.If Taiwan and Korea were to engage in trade, which country would export which good?
d.How would the answer to the above question change if a worker in Korea could make 4 TVs per week?

Question

Quizplus · Accepted Answer

The Answer of Suppose that a worker in Taiwan can make 2 TVs or 10 pairs of shoes per week, and a worker in Korea can make 3 TVs or 20 pairs of shoes per week.
a.In what sense do TVs and shoes cost less in Korea than in Taiwan?
b.In what sense do TVs cost less in Taiwan than in Korea?
c.If Taiwan and Korea were to engage in trade, which country would export which good?
d.How would the answer to the above question change if a worker in Korea could make 4 TVs per week?

Suppose That a Worker in Taiwan Can Make 2 TVs