Poland Requires 4 Hours of Labor to Produce 1 Ton

question 116

Multiple Choice

Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. The Czech Republic requires 6 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of wheat. 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

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