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Answer the Question on the Basis of the Accompanying Production

Question 96

Multiple Choice

Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia.   Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be A) 4 tons of beans. B) 1 ton of pork and 2 tons of beans. C) 4 tons of pork. D) 2 tons of pork and 4 tons of beans. Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be


A) 4 tons of beans.
B) 1 ton of pork and 2 tons of beans.
C) 4 tons of pork.
D) 2 tons of pork and 4 tons of beans.

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