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Assume that workers in Bulgaria and the U.K. can produce the following (in tons per worker per year): Crops Machines Bulgaria 4 OR 8 U.K.

Assume that workers in Bulgaria and the U.K. can produce the following (in tons per worker per year):

Crops

Machines

Bulgaria

4

OR

8

U.K.

10

OR

10

a)Which country's producers have an absolute advantage in producing (a)crops, and (b) machines? Explain.

b)Which country's producers have a comparative advantage in producing (a) crops, and (b) machines?Show your results in a table similar to the one above. Who should specialize in which product?

Crops

Machines

Bulgaria

OR

U.K.

OR

c)If each country has 10 workers, how much would each country produce if they decided to trade?

Bulgaria:___________________________U.K.________________________

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