$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { U.S. production } \
\text { possi bilities }
\end{array} & \begin{array} { l }
\text { France's production } \
\text { possibilities }
\end{array} \
\hline \text { Steel } & 100 & 25 \
\hline \text { Concrete } & 200 & 100 \
\hline
\end{array}$$
-The data in the above table demonstrates that gains from trade can be captured if
A) each country became self-sufficient, produced both goods for itself, and did not engage in trade.
B) the United States produced steel in exchange for concrete produced in France.
C) the United States produced both goods.
D) the United States produced concrete in exchange for steel produced in France.

Question

$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { U.S. production } \
\text { possi bilities }
\end{array} & \begin{array} { l } 
\text { France's production } \
\text { possibilities }
\end{array} \
\hline \text { Steel } & 100 & 25 \
\hline \text { Concrete } & 200 & 100 \
\hline
\end{array}$$
-The data in the above table demonstrates that gains from trade can be captured if
A) each country became self-sufficient, produced both goods for itself, and did not engage in trade.
B) the United States produced steel in exchange for concrete produced in France.
C) the United States produced both goods.
D) the United States produced concrete in exchange for steel produced in France.

Quizplus · Accepted Answer

The United States can produce more steel than France, and France can produce more concrete than the United States. Therefore, the United States can specialize in producing steel and trade with France for concrete, which will result in gains from trade.

-The Data in the Above Table Demonstrates That Gains from \hline

-The Data in the Above Table Demonstrates That Gains from
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