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3. You have the following information concerning the production of

wheat and cloth in the United States and the United Kingdom:    

Labor Hours Required to Produce One Unit

                                 The United Kingdom           The United States                 

Wheat                                  2                                          1

Cloth                                      6                                           5

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?

d. Which country should specialize in producing wheat? In producing cloth?     



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