Question

England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 30 scones per hour or 2 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 4 sweaters per hour. Who will produce sweaters?

Answer 1

Answer:

Step-by-step explanation:

                Scones Sweaters

England        30              2

Scotland         40              4

The opportunity cost  calculation:

Opportunity Cost

                        England           Scotland

1 Scone 0.066 Sweaters 0.1 Sweaters

1 Sweater 15 Scones 10 Scones

England has comparative advantage in production of Scones; Scotland has comparative advantage in production of Sweaters.

Scotland will produce Sweaters