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England and Scotland both produces scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour. a) Which country has the absolute advantage in the production of each good? Which country has the comparative advantage? b) If England and Scotland decide to trade, which commodity will Scotland trade to England? Explain. c) If a Scottish worker could produce only 1 sweater per hour, would Scotland still gain from trade? Would England still gain from trad
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Hansen Construction, Inc., has consistently used the percentage-of-completion method of recognizing income. During 1997 Hansen started work on a $3,000,000 fixed-price construction contract. Explain how much loss should Hansen have recognized in ..
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