Gains from trade please complete the work sheet,Interdependence and Gains from TradeNumber of Units Produced in One HourFood ClothingEngland205Scotland1241. Each country works 10 hours per day. Create the PPF for each country, showing the table as well as the graph.2. Who has the Absolute Advantage in Food? _______________ in Clothing?_________________How did you determine who has the absolute advantage?__________________________________________________________________________________________________________________3. What is the Opportunity Cost for England forWhat is the Opportunity Cost for Scotland for1 unit of Food?________________1 unit of Food?________________1 unit of Clothing?_________________1 unit of Clothing?_________________4. Who has the Comparative Advantage in Food? ______________ in Clothing?_______________How did you determine who has the comparative advantage?_______________________________________________________________________________________________________________5. England should specialize in production of __________ and trade Scotland for ____________Scotland should specialize in production of __________ and trade England for ____________6. Prior to trade each country spends 5 hours a day producing each good (for a total of a 10 hr work day).Show how specialization and trade can make each country better off.6a. Prior to trade or specialization:6b. After specialization before trade:England:Food _____ Clothing _____England:Food_____ Clothing_____(6hrs)(4hrs)Scotland:Food _____ Clothing _____Scotland:Food_____ Clothing_____(5hrs)(5hrs)6c. After specialization and trade:6d. How much better off are they from part 1 to 3:England:Food_____ Clothing_____England:Food_____ Clothing_____Scotland:Food_____ Clothing_____Scotland:Food_____ Clothing_____7. Illustrate on the graph of your PPF your answers to question 6a and 6c.

Some say that with increased technology, such as ATMs and debit cards, and the expense of printing money, our society is headed for a completely paperless banking system. This means that paper money and coins would be removed from the economy. Instead, our bank balances would be handled by computers. We would carry plastic cards (much like debit cards) and use them to deduct money from our accounts and to pay bills. Paying bills will simply become a matter of deducting money from one account and crediting it to another via the computer.Do you agree with this thought? Do you think we are headed for a completely paperless banking system with no paper currency at all? Post your answer to this question along with at least two reasons that support your opinion. Be sure to completely explain your position. Your explanation should be logical and show thought and reasoning.