26 The world consists of two countries, M and N. The graphs show their production possibilities for wheat and rice. rice 100 country M 0 rice 75- country N 0+ 100 0 50 wheat wheat Countries M and N operate on their production possibility curves and, before specialisation, country M produces 60 units of wheat and country N produces 30 units of wheat. What will be the change in the world output of rice if both countries decide to specialise according to comparative advantage? A It will fall by 5 units. B It will fall by 30 units. C It will rise by 5 units. D It will rise by 30 units. help in 926 ion T sis. ice case ty.pdf y20_sm practice- c...nely.pdf cualian-

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter28: International Trade
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26 The world consists of two countries, M and N. The graphs show their production possibilities for
wheat and rice.
rice
100
country M
0
rice
75-
country N
0+
100
0
50
wheat
wheat
Countries M and N operate on their production possibility curves and, before specialisation,
country M produces 60 units of wheat and country N produces 30 units of wheat.
What will be the change in the world output of rice if both countries decide to specialise
according to comparative advantage?
A
It will fall by 5 units.
B
It will fall by 30 units.
C
It will rise by 5 units.
D
It will rise by 30 units.
help in 926
ion T
sis.
ice case
ty.pdf
y20_sm
practice-
c...nely.pdf
cualian-
Transcribed Image Text:26 The world consists of two countries, M and N. The graphs show their production possibilities for wheat and rice. rice 100 country M 0 rice 75- country N 0+ 100 0 50 wheat wheat Countries M and N operate on their production possibility curves and, before specialisation, country M produces 60 units of wheat and country N produces 30 units of wheat. What will be the change in the world output of rice if both countries decide to specialise according to comparative advantage? A It will fall by 5 units. B It will fall by 30 units. C It will rise by 5 units. D It will rise by 30 units. help in 926 ion T sis. ice case ty.pdf y20_sm practice- c...nely.pdf cualian-
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