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Suppose There Are Only 2 Nations a and B,and Only

Question 80

Multiple Choice

Suppose there are only 2 nations A and B,and only two goods,x and y.If nation A produces only x,it can make 12x per day.If nation A produces only y,it can make 36y per day.If nation B produces only x,it can make 4x per day.If nation B produces only y,it can make 12y per day.After trade begins,nation ________ will specialize in the production of x and nation ________ will specialize in the production of y.


A) A;B
B) B;B
C) B;A
D) No trade will occur.

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