SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE

question 43

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 wheat?

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