Suppose That in Slovakia One Unit of Labor Can Produce

question 75

Multiple Choice

Suppose that in Slovakia one unit of labor can produce either 16 tons of wheat or 32 tons of soy and in Poland one unit of labor can produce either 4 tons of wheat or 2 tons of soy. Given this information, which of the following statements is true?

• A) Slovakia has a comparative advantage in producing neither wheat nor soy.
• B) Slovakia has a comparative advantage in producing both wheat and soy.
• C) Poland has a comparative advantage in producing soy but not wheat.
• D) Poland has a comparative advantage in producing wheat but not soy.

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