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Table shows the number of hours of labor required to produce 1 unit of output of computers and cotton in England and France. a)......... has

Table shows the number of hours of labor required to produce 1 unit of output of computers and cotton in England and France.

a)......... has an absolute advantage in computers. (5p)

b).......... has an absolute advantage in cotton. (5p)

c)......... has a comparative advantage in computers. (5p)

d)......... has a comparative advantage in cotton. (5p)

e)Price ratio( computers/cotton) should be between ............. and ............. for free trade. (5p)

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Computers cotton England 10 4 France 6 3

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