Question: The following table gives recent figures for yield per acre in Illinois and Kansas: a. If we assume that farmers in Illinois and Kansas use

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

Soybeans 39 24 Wheat 48 40 Illinois Kansas

a. 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?
b. 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?
c. Which state has a comparative advantage in wheat production? in soybean production?
d. The following table gives the distribution of land planted for each state in millions of acres in the same year.

Total Acres Under Till Wheat 1.9 (8.3%) 11.8 (57.0%) Soybeans 9.1 9.1 (39.7%) Illinois 22.9 20.7 1.9 Kansas (9.2%)

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

Soybeans 39 24 Wheat 48 40 Illinois Kansas Total Acres Under Till Wheat 1.9 (8.3%) 11.8 (57.0%) Soybeans 9.1 9.1 (39.7%) Illinois 22.9 20.7 1.9 Kansas (9.2%)

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