Question

SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE
Poland requires 4 hours of labor to produce a ton of coal and 10hours 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.


26. (Scenario: Absolute and Comparative Advantage) Which country has an absolute advantage in the production of wheat?
A) Poland
B) the Czech Republic
C) neither country
D) both countries


27. (Scenario: Absolute and Comparative Advantage) Which country has an absolute advantage in the production of coal?
A) Poland
B) the Czech Republic
C) neither country
D) both countries


28. (Scenario: Absolute and Comparative Advantage) Which country has a comparative advantage in the production of coal?
A) Poland
B) the Czech Republic
C) neither country
D) both countries


29. (Scenario: Absolute and Comparative Advantage) Which countryhas a comparative advantage in the production of wheat?
A) Poland
B) the Czech Republic
C) neither country
D) both countries


30. (Scenario: Absolute and Comparative Advantage) What is theopportunity cost of coal in Poland?
A) 1/4 hour of labor/ton of coal

B) 2 1/2 bushels of wheat/ton of coal

C) 4 hours of labor/ton of coal
D) 4/10 bushels of wheat/ton of coal

Scenario: Absolute and Comparative Advantage) In Poland, what is the marginal product of labor in coal production?
A) 2.5 tons per hour
B) 0.4 tons per hour
C) 4 tons per hour
D) 0.4 tons per bushel of wheat