Figure 3-14
Arturo's Production Possibilities Frontier
Dina's Production Possibilities Frontier
-Refer to Figure 3-14.Without trade,Arturo produced and consumed 240 tacos and 120 burritos and Dina produced and consumed 100 tacos and 150 burritos.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 260 tacos for 156 burritos.As a result,Arturo gained
A)20 tacos and 24 burritos and Dina gained 40 tacos and 6 burritos.
B)20 tacos and 36 burritos and Dina gained 160 tacos and 6 burritos.
C)260 tacos and 144 burritos and Dina gained 140 tacos and 156 burritos.
D)260 tacos and 156 burritos and Dina gained 260 tacos and 156 burritos.

Question

Figure 3-14
Arturo's Production Possibilities Frontier
Dina's Production Possibilities Frontier  
-Refer to Figure 3-14.Without trade,Arturo produced and consumed 240 tacos and 120 burritos and Dina produced and consumed 100 tacos and 150 burritos.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 260 tacos for 156 burritos.As a result,Arturo gained
A)20 tacos and 24 burritos and Dina gained 40 tacos and 6 burritos. 
B)20 tacos and 36 burritos and Dina gained 160 tacos and 6 burritos. 
C)260 tacos and 144 burritos and Dina gained 140 tacos and 156 burritos. 
D)260 tacos and 156 burritos and Dina gained 260 tacos and 156 burritos.

Quizplus · Accepted Answer

Arturo originally produced and consumed 240 tacos and 120 burritos. After trade, he has 260 tacos (20 more) and 144 burritos (24 more). Dina originally produced and consumed 100 tacos and 150 burritos. After trade, she has 140 tacos (40 more) and 156 burritos (6 more).

Figure 3-14 Arturo's Production Possibilities Frontier