In Poland, one hour of labour can produce 2 tons of coal or 4 bushels of oats. In England, one hour of labour can produce 3 tons of coal or 9 bushels of oats. The trading equilibrium ratio of the price of coal to the price of oats equals 2.2. Which country will experience the largest gains from trade? A) Poland B)England C)Neither, the gains from trade are equal across country D)There is not enough information -- we need to know each country's labour supply

Principles of Macroeconomics (MindTap Course List)
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Chapter3: Interdependence And The Gains Rrom Trade
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In Poland, one hour of labour can produce 2 tons of coal or 4 bushels of oats. In England, one hour of labour can produce 3 tons of coal or 9 bushels of oats. The trading equilibrium ratio of the price of coal to the price of oats equals 2.2. Which country will experience the largest gains from trade?

A) Poland

B)England

C)Neither, the gains from trade are equal across country

D)There is not enough information -- we need to know each country's labour supply

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