Poland Requires 4 Hours of Labor to Produce 1 Ton

question 38

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 the international price of coal is 4 1/4 bushels of wheat per ton of coal. Which country is likely to have the larger gain from trade?

• A) Poland
• B) the Czech Republic
• C) Neither country has the larger gain.
• D) Both countries have the larger gain.

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Definitions:

Small Town

A community with a small population and limited urban development, often characterized by a close-knit social atmosphere.

Lifelong Home

A concept of creating living spaces that are suitable and adaptable for individuals at all stages of life, accommodating various physical and mobility needs.

Sense of Identity

An individual's recognition of their own continuous identity over time, including personal traits, beliefs, and values.

Cohabitation

An arrangement in which a committed, unmarried couple lives together in the same home.