Solved

The Following Data Outline Production Choices (A or B) in Two

Question 32

Multiple Choice

The following data outline production choices (A or B) in two nations, Latalia and Trombonia. Latalia has a workforce of 14 and Trombonia has a workforce of 10.

 Output per worker in Latalia  Output per worker in Trombonia  A  B  A  B  Pork (tons)  40 Pork (tons)  80 Beans (tons)  020 Beans (tons)  024\begin{array} { | l | c | c | l | c | c | c | } \hline { \text { Output per worker in Latalia } } & &&& { \text { Output per worker in Trombonia } } \\\hline & \text { A } & \text { B } & & & \text { A } & \text { B } \\\hline \text { Pork (tons) } & 4 & 0 & & \text { Pork (tons) } & 8 & 0 \\\hline \text { Beans (tons) } & 0 & 20 & & \text { Beans (tons) } & 0 & 24 \\\hline\end{array}
-Assume that before specialization and trade,each nation devoted half of its workforce to each product.If these two nations fully specialize in accordance with comparative advantage,the total gains from specialization would be:


A) 12 tons of pork and 20 tons of beans
B) 88 tons of pork and 120 tons of beans
C) 100 tons of pork and 100 tons of beans
D) 12 tons of pork and 120 tons of beans
E) 88 tons of pork and 100 tons of beans

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents