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) What is the
Opportunity cost of coal in Poland?

A) 0.25 hour of labor/ton of coal
B) 2.5 bushels of wheat/ton of coal
C) 4 hours of labor/ton of coal
D) 0.4 bushels of wheat/ton of coal