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 prudence 40 scones per
hour or 2 sweaters per hour.

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Question: England and Scotland both produce scones and sweaters. Suppose that an English worker can produce…
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a. Which country has the absolute advantage in the production 0f
each good? Which country has the comparative advantage?

b. If England and Scotland decide to trade, which commodity will
Scotland trade to England? Explain.

c. If a Scottish worker could produce only 1 sweater per hour,
would Scotland still gain from trade? Explain.

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