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10. Assume that there are two nations in the world, Ireland and Switzerland, and that they an produce only two products. Each country uses half of its resources on each product. They can produce the following: Wool Chocolate Ireland 4,000kg 2,200kg Deco Switzerland 2,500kg 5,000kg a) If the two countries do not trade, how much wool and chocolate is produced? Show your work (4 Marks) b) Rewrite the following sentences and select the correct word in brackets: i. Ireland has a[n) (absolute, comparative) advantage in the production of (wool, chocolate). (2 Marks) Switzerland has an) (absolute, comparative) advantage in the production of (wool, chocolate). (2 Marks) 10. Assume that there are two nations in the world, Ireland and Switzerland, and that they an produce only two products. Each country uses half of its resources on each product. They can produce the following: Wool Chocolate Ireland 4,000kg 2,200kg Deco Switzerland 2,500kg 5,000kg a) If the two countries do not trade, how much wool and chocolate is produced? Show your work (4 Marks) b) Rewrite the following sentences and select the correct word in brackets: i. Ireland has a[n) (absolute, comparative) advantage in the production of (wool, chocolate). (2 Marks) Switzerland has an) (absolute, comparative) advantage in the production of (wool, chocolate). (2 Marks)

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