Country A can produce 10 tons of wheat or 5 tons of cloth, while Country B can produce 8 tons of wheat or 4 tons of cloth. Which country has a comparative advantage in producing wheat?

To determine which country has a comparative advantage in producing wheat, we need to look at how much each country gives up to produce wheat instead of cloth. Country A can produce 10 tons of wheat or 5 tons of cloth, meaning for every ton of wheat, it gives up 0. 5 tons of cloth. Country B can produce 8 tons of wheat or 4 tons of cloth, so for each ton of wheat, it gives up 0. 5 tons of cloth as well.