rainee asked:


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.

- Which country has the absolute advantage in the production of each good? Which country has the comparative advantage?

- If England and Scotland decide to trade, which commodity will Scotland trade to England?

- If a Scottish worker could produce only 1 sweater per hour, would Scotland will gain from trade? Would England still gain from trade?