Suppose that India has 60 workers. 6 Indian workers can produce a motorcycle and 10 Indian workers can produce a car. So India can produce a maximum of 10 motorcycles and a maximum of 6 cars. Korea also has 60 workers. 3 Korean workers can produce a motorcycle and 2 Korean workers can produce a car. So Korea can produce a maximum of 20 motorcycles and a maximum of 30 cars.
a. Which country has an absolute advantage in producing motorcycles?
b. Which country has an absolute advantage in producing cars?
c. Which country has a comparative advantage in producing motorcycles?
d. Which country has a comparative advantage in producing cars?
e. Which country should produce motorcycles?