Assume that there are two nations in the world, Ireland, and Switzerland, and that each country...

 

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Assume that there are two nations in the world, Ireland, and Switzerland, and that each country can produce only two products. Each country uses half of its resources on each product. They can produce the following: Ireland Switzerland Wool 6,000 kg 1,500 kg Ireland Switzerland Total 1. If the two nations do not trade, how much wool and chocolate is produced? 2. Read the sentences and circle/highlight the correct word in brackets assuming the two nations do not trade: a. Ireland has a(n) (absolute, comparative) advantage in the production of (wool, chocolate) b. Switzerland has a(n) (absolute, comparative) advantage in the production of (wool, chocolate) 3. The two countries decide to trade. Fill in the following table: Chocolate 4,500 kg 7,000 kg Wool Chocolate Assume that there are two nations in the world, Ireland, and Switzerland, and that each country can produce only two products. Each country uses half of its resources on each product. They can produce the following: Ireland Switzerland Wool 6,000 kg 1,500 kg Ireland Switzerland Total 1. If the two nations do not trade, how much wool and chocolate is produced? 2. Read the sentences and circle/highlight the correct word in brackets assuming the two nations do not trade: a. Ireland has a(n) (absolute, comparative) advantage in the production of (wool, chocolate) b. Switzerland has a(n) (absolute, comparative) advantage in the production of (wool, chocolate) 3. The two countries decide to trade. Fill in the following table: Chocolate 4,500 kg 7,000 kg Wool Chocolate

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1 If the two nations do not trade they each produce what they can with their available resources The ... View the full answer