SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE

question 127

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) What is the
Opportunity cost of coal in Poland?

• A)0.25 hour of labor/ton of coal
• B)2.5 bushels of wheat/ton of coal
• C)4 hours of labor/ton of coal
• D)0.4 bushels of wheat/ton of coal

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