England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 40 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 20 scones per hour or 2 sweaters per hour. workers have an absolute advantage in producing scones, and workers have an absolute advantage in producing sweaters. workers have a comparative advantage in producing scones, and workers have a comparative advantage in producing sweaters. If England and Scotland decide to trade, Scotland will trade to England. If an English worker could produce only 20 scones per hour, England gain from trade, and Scotland gain from trade.
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 40 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 20 scones per hour or 2 sweaters per hour. workers have an absolute advantage in producing scones, and workers have an absolute advantage in producing sweaters. workers have a comparative advantage in producing scones, and workers have a comparative advantage in producing sweaters. If England and Scotland decide to trade, Scotland will trade to England. If an English worker could produce only 20 scones per hour, England gain from trade, and Scotland gain from trade.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....
Related questions
Question
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 40 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 20 scones per hour or 2 sweaters per hour.
workers have an absolute advantage in producing scones, and workers have an absolute advantage in producing sweaters.
workers have a comparative advantage in producing scones, and workers have a comparative advantage in producing sweaters.
If England and Scotland decide to trade, Scotland will trade to England.
If an English worker could produce only 20 scones per hour, England gain from trade , and Scotland gain from trade.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
