SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE

question 49

Multiple Choice

SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE
Poland requires 4 hours of labor to produce a ton of coal and 10 hours of
Labor to produce 10 bushels of wheat.The Czech Republic requires 6
Hours of labor to produce a ton of coal and 10 hours of labor to produce
10 bushels of wheat.
Reference: Ref 2­5
(Scenario: Absolute and Comparative Advantage) Which country has a
Comparative advantage in the production of coal?

• A)Poland
• B)the Czech Republic
• C)Neither country has a comparative advantage.
• D)Both countries have a comparative advantage.

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Definitions:

Horizontal Merger

The merger into a single firm of two firms producing the same product and selling it in the same geographic market.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at increasing economic competition and preventing monopolies by prohibiting specific types of conduct that could harm competitors.

Antitrust Laws

Legislation aimed at promoting competition within markets by regulating anti-competitive practices, monopolies, and mergers that could restrict trade.

Structuralists

Theorists who believe that human culture and society are heavily influenced by underlying structures, often in fields such as anthropology, sociology, and linguistics.