Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. Latalia's production possibilities A B D E Pork (Tons) Beans (Tons) 4 3 2 1 10 15 Trombonia's production possibilities A E Pork (Tons) Beans (Tons) 8 6. 4 2 6. 12 18 24 Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be A) 4 tons of pork. C) 4 tons of beans. B) 2 tons of pork and 4 tons of beans. D) 1 ton of pork and 2 tons of beans. 20

Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. Latalia's production possibilities A B D E Pork (Tons) Beans (Tons) 4 3 2 1 10 15 Trombonia's production possibilities A E Pork (Tons) Beans (Tons) 8 6. 4 2 6. 12 18 24 Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be A) 4 tons of pork. C) 4 tons of beans. B) 2 tons of pork and 4 tons of beans. D) 1 ton of pork and 2 tons of beans. 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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