Table 3-21
Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate. The following table shows the number of coolers or number of radios each country can produce in one day.
-Refer to Table 3-21. Assume that Jamaica and Norway each has 4 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by
A)12.
B)24.
C)36.
D)48.

Question

Table 3-21
Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate. The following table shows the number of coolers or number of radios each country can produce in one day. 
-Refer to Table 3-21. Assume that Jamaica and Norway each has 4 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by
A)12. 
B)24. 
C)36. 
D)48.

Quizplus · Accepted Answer

The increase in total output of coolers is determined by the shift in production to the good in which each country has a comparative advantage. If Jamaica and Norway both specialize in the production of the good they are most efficient at, the total output of coolers will increase by 24 units.

Table 3-21 Assume That Jamaica and Norway Can Switch Between Producing Coolers