Suppose that labor is the only productive resource needed. Scotland has a comparative advantage in producing firewood, while Iceland has a comparative advantage in producing wool. If the two nations trade with each other,
A) Scotland should export wool and Iceland should export firewood.
B) Scotland should export both wool and firewood.
C) Scotland should export firewood and Iceland should export wool.
D) Iceland should export both wool and firewood.
Correct Answer:
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