The figure shows how much a worker can produce in one day. Australia should: Figure 3-1 Food Electronics Australia 10 Korea 8 2 a) specialize in electronics production, export electronics, and import food. b) produce neither good because it has an absolute disadvantage in the productior both goods

The figure shows how much a worker can produce in one day. Australia should: Figure 3-1 Food Electronics Australia 10 Korea 8 2 a) specialize in electronics production, export electronics, and import food. b) produce neither good because it has an absolute disadvantage in the productior both goods

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The figure shows how much a worker can produce in one day. Australia should:
Figure 3-1
Food
Electronics
Australia
10
5
Korea
2
a) specialize in electronics production, export electronics, and import food.
b) produce neither good because it has an absolute disadvantage in the production of
both goods.
c) produce both goods because neither country has a comparative advantage.
d) specialize in food production, export food, and import electronics
8.

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