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) The international price
Of wheat must fall between which of the following two prices?
A)between 1/6 ton and 1/4 ton of coal per bushel of wheat
B)between 1 2/3 ton and 2 1/2 tons of coal per bushel of wheat
C)between 1/6 hour and 1/4 hour of labor per bushel of wheat
D)between 4 tons and 6 tons of coal per bushel of wheat

Question

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) The international price
Of wheat must fall between which of the following two prices?
A)between 1/6 ton and 1/4 ton of coal per bushel of wheat
B)between 1 2/3 ton and 2 1/2 tons of coal per bushel of wheat
C)between 1/6 hour and 1/4 hour of labor per bushel of wheat
D)between 4 tons and 6 tons of coal per bushel of wheat

Quizplus · Accepted Answer

The opportunity cost of producing wheat in Poland is 1/4 ton of coal per bushel, and in the Czech Republic, it is 1/6 ton of coal per bushel. Therefore, the international price of wheat must fall between these two opportunity costs.