Multiple Choice
Figure 3-1
-Refer to Figure 3-1. Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in and trade 3 bushels of wheat for 3 bushels of corn. What would Cliff now be able to consume?
A) 2 bushels of wheat and 3 bushels of corn
B) 3 bushels of wheat and 3 bushels of corn
C) 3 bushels of wheat and 4 bushels of corn
D) 4 bushels of wheat and 3 bushels of corn
Correct Answer:
Verified
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