Table 2-11

Table 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-11.If the two countries specialize and trade, who should export guitars?
A)There is no basis for trade between the two countries.
B)Ireland
C)Scotland
D)They should both be exporting guitars.

Question

Table 2-11
  
Table 2-11 shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.
-Refer to Table 2-11.If the two countries specialize and trade, who should export guitars?
A)There is no basis for trade between the two countries. 
B)Ireland 
C)Scotland 
D)They should both be exporting guitars.

Quizplus · Accepted Answer

Ireland has a comparative advantage in producing guitars, as it can produce them at a lower opportunity cost than Scotland.

Table 2-11 Table 2-11 Shows the Number of Labor Hours Required to of Labor