England and Scotland both produce scones and jumpers. Suppose that an English worker can produce 50 scones per hour or one jumper per hour. Suppose that a Scottish worker can produce 40 scones per hour or two jumpers per hour.

a Which country has the absolute advantage in the production of 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 one jumper per hour, would Scotland still gain from trade? Would England still gain from trade? Explain.