Below is the productivity per worker (kilos per day)in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people.

-Refer to the information above to answer this question.Suppose that a single worker in each country is transferred from the less to the more productive industry.What will be the total gains from specialization?

Question

Below is the productivity per worker (kilos per day)in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people.
 
-Refer to the information above to answer this question.Suppose that a single worker in each country is transferred from the less to the more productive industry.What will be the total gains from specialization?

Quizplus · Accepted Answer

To find the total gains from specialization, we need to calculate the increase in productivity from transferring one worker from the less productive industry to the more productive industry in each country, and then multiply it by the number of workers in the country.

For Caledonia, transferring one worker from beans to wheat will increase productivity by 4 kilos per day (8 - 4). So the total gain from specialization in Caledonia will be:

4 kilos/day * 16 million workers = 64 million kilos/day

For Ibrox, transferring one worker from pork to beef will increase productivity by 3 kilos per day (9 - 6). So the total gain from specialization in Ibrox will be:

3 kilos/day * 16 million workers = 48 million kilos/day

Adding the gains from both countries together, we get:

64 million kilos/day + 48 million kilos/day = 112 million kilos/day

Therefore, the best choice is C: Beef + 2 and pork + 6, as this represents the total gain from specialization in kilos per day for both industries.

Below Is the Productivity Per Worker (Kilos Per Day)in the Wheat