Qusetion: 1. What is Ireland's opportunity cost of producing one hand-made wool sweater?
2. What is Germany's opportunity cost of producing one hand-made wool sweater?
3. What is Ireland's opportunity cost of producing one barrel of beer?
4. What is Germany's opportunity cost of producing one barrel of beer?
5. Ireland has a comparative advantage in?
6. Germany has a comparative advantage in?
If the two countries specialize and trade, who should export barrels of beer?
|
One Hand-Made Wool Sweater |
One Barrel of Beer |
| Ireland |
16 hours |
4 hours |
| Germany |
10 hours |
2 hours |