a. What is the opportunity cost of producing a unit of wheat in the United Kingdom? In the United States? b. Which country has an absolute advantage in producing wheat? In producing cloth? c. Which country has a comparative advantage in producing wheat? In producing cloth?
(Absolute and
Wheat Cloth
Labor Hours Required to Produce One Unit
The United Kingdom /The United States
Wheat 2 1
Cloth 6 5
a. What is the
b. Which country has an
c. Which country has a comparative advantage in producing wheat? In producing cloth?
d. Which country should specialize in producing wheat? In producing cloth?
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