Table 3-1
Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.

-Refer to Table 3-1.Andia should specialize in the production of
A) wheat and Zardia should specialize in the production of beef.
B) beef and Zardia should specialize in the production of wheat.
C) both goods and Zardia should specialize in the production of neither good.
D) neither good and Zardia should specialize in the production of both goods.

Question

Table 3-1
Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.
 
-Refer to Table 3-1.Andia should specialize in the production of
A) wheat and Zardia should specialize in the production of beef. 
B) beef and Zardia should specialize in the production of wheat. 
C) both goods and Zardia should specialize in the production of neither good. 
D) neither good and Zardia should specialize in the production of both goods.

Quizplus · Accepted Answer

Andia should specialize in the production of beef if it has a comparative advantage in beef, while Zardia should specialize in wheat if it has a comparative advantage in wheat.

Table 3-1 Assume That Andia and Zardia Can Switch Between Producing Wheat