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Suppose the Czech Republic and Slovakia Can Produce Either Wheat

Question 14

Multiple Choice

Suppose the Czech Republic and Slovakia can produce either wheat or cotton on an acre of land. If the Czech Republic (CR) produces 1.0 bale of cotton, the CR gives-up 1.33 bushels of wheat. If Slovakia (SK) produces 1.0 bale of cotton, SK gives-up 2.00 bushels of wheat. Which nation has a comparative advantage in cotton output, and which nation has comparative in wheat output?


A) CR has a comparative advantage in cotton output, and SK has a comparative advantage in wheat output.
B) SK has a comparative advantage in cotton output, and CR has a comparative advantage in wheat output.
C) Neither SK nor CR have a comparative advantage in the output or either crop.
D) SK has a comparative advantage in both cotton and wheat output.
E) CR has a comparative advantage in both cotton and wheat

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