SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE

question 78

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) Suppose that Poland
Has 1,000 hours of labor and that it completely specializes according to
Its comparative advantage.How many units of which product will it
Produce?

• A)250 tons of coal
• B)1,000 bushels of wheat
• C)100 bushels of wheat
• D)4,000 tons of coal