SCENARIO: ABSOLUTE AND COMPARATIVE ADVANTAGE

Multiple Choice

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) Which country has an
Absolute advantage in the production of wheat?

A) Poland
B) the Czech Republic
C) Neither country has an absolute advantage.
D) Both countries have an absolute advantage.