Table 18-2
$\begin{array}{r}
\text { Output Per Unit Labor Input }\
\begin{array}{lcc}
& \underline {\text { England }}& \underline {\text { Portugal }}\
\text { Cloth } \quad\quad\quad& 20\quad & 24\quad \
\text { Wine } & 2\quad & 12\quad \
\end{array}
\end{array}$

-Using the data from Table 18-2, suppose England transfers 2 units of labor from wine to cloth and Portugal transfers 1 unit from cloth to wine.The combined production of wine and cloth will be increased by
A) 16 wine, 8 cloth.
B) 16 wine, 16 cloth.
C) 12 wine, 12 cloth.
D) 8 wine, 16 cloth.

Question

Table 18-2
 $\begin{array}{r}
\text { Output Per Unit Labor Input }\
\begin{array}{lcc}
& \underline {\text {  England }}& \underline {\text {  Portugal }}\
\text {  Cloth } \quad\quad\quad&  20\quad &  24\quad \
\text {  Wine } &  2\quad & 12\quad  \
\end{array}
\end{array}$

-Using the data from Table 18-2, suppose England transfers 2 units of labor from wine to cloth and Portugal transfers 1 unit from cloth to wine.The combined production of wine and cloth will be increased by
A) 16 wine, 8 cloth.
B) 16 wine, 16 cloth.
C) 12 wine, 12 cloth.
D) 8 wine, 16 cloth.

Quizplus · Accepted Answer

England gains 40 cloth (20 cloth per unit x 2 units) and loses 4 wine (2 wine per unit x 2 units). Portugal gains 12 wine (12 wine per unit x 1 unit) and loses 24 cloth (24 cloth per unit x 1 unit). The net change is 8 wine (12 - 4) and 16 cloth (40 - 24).

Table 18-2 -Using the Data from Table 18-2, Suppose England Transfers 2