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

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) 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

Quizplus · Accepted Answer

Poland has a comparative advantage in producing coal because it requires fewer hours of labor (4 hours) compared to the Czech Republic (6 hours). With 1,000 hours of labor, Poland can produce 250 tons of coal (1,000 hours / 4 hours per ton).