Is this sensible? Explain.
e. Which country has a comparative advantage in
producing cars? In producing grain? 7. England and Scotland both produce scones and
f. Without trade,
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produce cars and half produce grain. What 50 scones per hour or 1 sweater per hour. Suppose that
quantities of cars and grain does each country a Scottish worker can produce 40 scones per hour or
produce? 2 sweaters per hour.
g. Starting from a position without trade,
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an example in which trade makes each country production of each good? Which country has the