Refer to Table 2-10. This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand
a. Which country has an absolute advantage in the production of wristwatches?
b. Which country has an absolute advantage in the production of rice?
c. What is Japan's opportunity cost of producing one wristwatch?
d. What is Thailand's opportunity cost of producing one wristwatch?
e. What is Japan's opportunity cost of producing one bushel of rice?
f. What is Thailand's opportunity cost of producing one bushel of rice?
g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce wristwatches?
h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce rice?
a. Thailand has an absolute advantage in the production of wristwatches.
b. Thailand has an absolute advantage in rice production.
c. Japan's opportunity cost of producing one wristwatch is 20 bushels of rice.
d. Thailand's opportunity cost of producing one wristwatch is 30 bushels of rice.
e. Japan's opportunity cost of one bushel of rice is 0.05 units of a wristwatch.
f. Thailand's opportunity cost of one bushel of rice is 0.03 units of a wristwatch.
g. Japan should specialize in producing wristwatches.
h. Thailand should specialize in producing rice.
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