Making a pound of wool takes 5 hours in Scotland and 2 hours in Iceland.Making a cord of firewood takes 5 hours in Scotland and 8 hours in Iceland.Suppose that labor is only productive resource needed in these industries,and is fully employed in both nations.Under these conditions,if Iceland produces 4 extra pounds of wool,but Scotland produces 2 fewer pounds of wool,there is a net

Question

Quizplus · Accepted Answer

Iceland uses 8 hours to produce 4 extra pounds of wool (4 x 2 hours), while Scotland saves 10 hours by producing 2 fewer pounds of wool (2 x 5 hours). The net gain is 2 hours, which allows for the production of 1 extra cord of firewood in Iceland (8 hours per cord).

Making a Pound of Wool Takes 5 Hours in Scotland