Multiple Choice
Autos and chemicals are in units of one million
-Refer to the above tables. Assume that prior to specialization and trade Germany and the United States both choose production possibility C. Now if each specializes according to its comparative advantage, the resulting total gains from specialization and trade will be:
A) 8 units of autos.
B) 6 units of autos.
C) 6 units of autos and 8 units of chemicals.
D) 8 units of autos and 6 units of chemicals.
Correct Answer:
Verified
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