The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or another product.The last two columns give each country's consumption without trade. $$\begin{array} { l c c c c c c }
& \begin{array} { c }
\text { Maxirnumn } \
\text { beer } \
\text { production }
\end{array} & \begin{array} { c }
\text { Maxirnum } \
\text { whiskey } \
\text { production }
\end{array} & \begin{array} { c }
\text { Beer consumption } \
\text { without trade }
\end{array} & \begin{array} { c }
\text { Beer consurnption } \
\text { without trade }
\end{array} \
\begin{array} { l }
\text { Northem } \
\text { Irelard } \
\text { Southem }
\end{array} & 500 \mathrm { kegs } & 1500 \mathrm { kegs } & 300 \mathrm { kegs } & 600 \text { bottles } \
\text { Ireland } & 1200 \mathrm { kegs } & \mathbf { 8 0 0 } \mathrm { kegs } & 600 \mathrm { kegs } & 400 \text { bottles }
\end{array}$$ What is the increased number of goods available in Northern Ireland after trade?
A)400 more bottles of whiskey and 200 more kegs of beer
B)1,000 more bottles of whiskey and 500 more kegs of beer
C)200 more bottles of whiskey and 400 more kegs of beer
D)300 more bottles of whiskey and 300 more kegs of beer

Question

The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or another product.The last two columns give each country's consumption without trade. $$\begin{array} { l c c c c c c } 
& \begin{array} { c } 
\text { Maxirnumn } \
\text { beer } \
\text { production }
\end{array} & \begin{array} { c } 
\text { Maxirnum } \
\text { whiskey } \
\text { production }
\end{array} & \begin{array} { c } 
\text { Beer consumption } \
\text { without trade }
\end{array} & \begin{array} { c } 
\text { Beer consurnption } \
\text { without trade }
\end{array} \
\begin{array} { l } 
\text { Northem } \
\text { Irelard } \
\text { Southem }
\end{array} & 500 \mathrm { kegs } & 1500 \mathrm { kegs } & 300 \mathrm { kegs } & 600 \text { bottles } \
\text { Ireland } & 1200 \mathrm { kegs } & \mathbf { 8 0 0 } \mathrm { kegs } & 600 \mathrm { kegs } & 400 \text { bottles }
\end{array}$$ What is the increased number of goods available in Northern Ireland after trade?
A)400 more bottles of whiskey and 200 more kegs of beer
B)1,000 more bottles of whiskey and 500 more kegs of beer
C)200 more bottles of whiskey and 400 more kegs of beer
D)300 more bottles of whiskey and 300 more kegs of beer

Quizplus · Accepted Answer

After trade, Northern Ireland will specialize in whiskey, and Southern Ireland will specialize in beer.

Northern Ireland can produce 1500 kegs of whiskey, of which it will consume 400 bottles. This means it has 1100 bottles of whiskey available for trade.

Southern Ireland can produce 1200 kegs of beer, of which it will consume 600 kegs. This means it has 600 kegs of beer available for trade.

Therefore, Northern Ireland can trade 600 kegs of beer for 1100 bottles of whiskey, resulting in an additional 400 bottles of whiskey and 200 kegs of beer.

The First Two Columns Give the Maximum Daily Amounts of Beer