1.Consider the following hypothetical information about the United States and South Korea shown in Exhibit 4.

a.Which country has the absolute advantage in steel production? __________________________________.

OUTPUT PER WORKER PER DAY

UNITEDSOUTH

STATESKOREA

Tons of steel84

Bushels of wheat808

b.Absolute advantage in wheat production? ___________________

c.Comparative advantage in steel production? __________________________

d.Comparative advantage in in wheat production? ____________________________

e.If these countries trade steel and wheat with each other, which country will export steel and import wheat?