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Business, 02.07.2019 23:20 myjavier

England and scotland both produce scones and sweaters. suppose that an english worker can produce 50 scones per hour or 1 sweater per hour. suppose that a scottish worker can produce 40 scones per hour or 2 sweaters per hour.(a) /scottish) workers have an absolute advantage in producing scones, and (english/scottish) workers have an absolute advantage in producing sweaters.(b) /scottish) workers have a comparative advantage in producing scones, and (english/scottish) workers have a comparative advantage in producing sweaters.(c) if england and scotland decide to trade, scotland will trade /sweaters) to england.(d) if a scottish worker could produce only 1 sweater per hour, scotland no long/would still) gain from trade, and england (would no long/would still) gain from trade.

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