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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. SK-#of hours to produce planes=2,000, produce cars=?. and US airplanes =800, and cars=5.
A) Without knowing the number of labor hours required to produce an auto in south korea, you cant figure out which country has the comparative advantage in which good. can you give an example for the number in the empty cell of the table that would give the US the comparative advantage in the production of airplanes? what about south korea?
B) Who has the absolute advantage in the production of airplanes? what about auto?
C) What exact number would you have to place in the empty cell of the table for it to be impossible that trade between the US and SK could benefit both nations?
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The Affordable Care Act:
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