Use the following to answer questions:
Figure: Rice and Shirts
-(Figure: Rice and Shirts) Use the PPFs shown for the United States and India. With specialization and trade, the United States would produce ________ and India would produce _________.
A) 50 pounds of rice and 0 shirts; 0 pounds of rice and 35 shirts
B) 30 pounds of rice and 16 shirts; 11.4 pounds of rice and 15 shirts
C) 0 pounds of rice and 40 shirts; 20 pounds of rice and 0 shirts
D) 50 pounds of rice and 40 shirts; 20 pounds of rice and 35 shirts

Question

Use the following to answer questions:
Figure: Rice and Shirts 
-(Figure: Rice and Shirts) Use the PPFs shown for the United States and India. With specialization and trade, the United States would produce ________ and India would produce _________.
A) 50 pounds of rice and 0 shirts; 0 pounds of rice and 35 shirts 
B) 30 pounds of rice and 16 shirts; 11.4 pounds of rice and 15 shirts 
C) 0 pounds of rice and 40 shirts; 20 pounds of rice and 0 shirts 
D) 50 pounds of rice and 40 shirts; 20 pounds of rice and 35 shirts

Quizplus · Accepted Answer

The United States should specialize in producing shirts, and India should specialize in producing rice, based on their comparative advantages.

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