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-
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-
Chapter28: International Trade
Section: Chapter Questions
Problem 2P
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