The following table gives recent figures for yield per acre in Illinois and Kansas : Illinois: WHEAT 48       SOYBEANS 39  Kansas: WHEAT40    SOYBEANS 24 If we assume that farmers in Illinois and Kansas use the same amount of labor , capital , and fertilizer , which state has an absolute advantage in wheat production ? soybean production ? If we transfer land out of wheat into soybeans , how many bushels of wheat do we give up in Illinois per additional bushel of soybeans produced in Kansas ? Which state has a comparative advantage in wheat produc tion ? in soybean production ?

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The following table gives recent figures for yield per acre in Illinois and Kansas :

Illinois: WHEAT 48       SOYBEANS 39

 Kansas: WHEAT40    SOYBEANS 24

  1. If we assume that farmers in Illinois and Kansas use the same amount of labor , capital , and fertilizer , which state has an absolute advantage in wheat production ? soybean production ?
  2. If we transfer land out of wheat into soybeans , how many bushels of wheat do we give up in Illinois per additional bushel of soybeans produced in Kansas ?
  3. Which state has a comparative advantage in wheat produc tion ? in soybean production ?
  4. The following table gives the distribution of land planted for each state in millions of acres in the same year .

Illinois TOTAL ACRES UNDER TILL 22.9

              WHEAT 1.9 ( 8.3 % )

              SOYBEANS 9.1 ( 39.7 % )

Kansas TOTAL ACRES UNDER TILL 20.7

              WHEAT 11.8 ( 57.0 % )

              SOYBEANS1.9 ( 9.2 % )

5. Are these data consistent with your answer to part 3 ? Explain .

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