England and Scotland both produce scones and pullovers.

Suppose that an English worker can produce 50 scones per hour or 1 pullover per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 pullovers 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 1 pullover per hour, would Scotland still gain from trade? Would England still gain from trade? Explain.