[tsmith86]

Can someone please help me with the following question.
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.) Which country has an absolute advantage in the production of each good? Which country has the comparative advantage?
(My answer: English has the absolute advantage of producting stones while a Scottish worker has the absolute advantage of producting sweaters. English has the comparative advantage?)
b.) If England and Scotland decide to trade, which commodity will Scotland trade to England?
Scotland will trade sweaters because England can not produce as many sweaters as Scotland can.
c.) If a Scottish worker could produce only 1 sweater per hour, would Scotland still gain from trade? Would England still gain from trade?
(This question I wasn't really sure on? )

[tony16]

a) The countries with the absolute advantage in producing scones would be the English workers, while the Scottish has the absolute advantage in producing sweaters. For comparative advantage the results are the same, the English workers produce more scones and the Scottish will produce more sweaters.

b) If England and Scotland would decide to trade, England would have to give 5 scones for every half sweater that Scotland gives. The reason for that is because after the trade, England and Scotland both will have 45 scones and 1 ½ sweaters per hour of production.

c) No, because Scotland would lose their comparative advantage in the production of sweaters since they would produce the same as England. England would still gain from the trade if Scotland still decided to trade 5 scones for every half sweater. The only reason that they would lose on the trade is if Scotland decided that they would have to trade less, which ultimately they would have to do.

This is what I got, I hope it helps