Essay
Consider the following daily production possibilities of apples and bananas in Ireland and Scotland:
Supposed that the production of apples require skilled workers while the bananas require unskilled workers. If Scotland and Ireland choose to trade with each other in order to take advantage of their opportunity costs:
a) Who will sell bananas? Who will sell Apples?
b) Which worker will gain in Scotland? Which worker will be hurt?
Correct Answer:
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a) Scotland will sell bananas because th...
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