The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be Multiple Choice 40 tons of pots. 20 tons of tea and 20 tons of pots. 20 tons of tea. 40 tons of tea.
The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be Multiple Choice 40 tons of pots. 20 tons of tea and 20 tons of pots. 20 tons of tea. 40 tons of tea.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons.
Gamma's production possibilities
| A | B | C | D | E | |
| Tea | 120 | 90 | 60 | 30 | 0 |
| Pots | 0 | 30 | 60 | 90 | 120 |
Sigma's production possibilities
| A | B | C | D | E | |
| Tea | 40 | 30 | 20 | 10 | 0 |
| Pots | 0 | 30 | 60 | 90 | 120 |
Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to
Multiple Choice
-
40 tons of pots.
-
20 tons of tea and 20 tons of pots.
-
20 tons of tea.
-
40 tons of tea.
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