-Using the figure above,if Jack and Jill specialise and gain from trade,then
A)Jack specialises in the production of bottled water.
B)Jack produces equal amounts of water and bottled water.
C)Jack specialises in the production of soft drink.
D)Jack specialises on the production of soft drink and water.
E)Jack and Jill produce beyond their PPF.

Question

-Using the figure above,if Jack and Jill specialise and gain from trade,then
A)Jack specialises in the production of bottled water. 
B)Jack produces equal amounts of water and bottled water. 
C)Jack specialises in the production of soft drink. 
D)Jack specialises on the production of soft drink and water. 
E)Jack and Jill produce beyond their PPF.

Quizplus · Accepted Answer

Jack has a comparative advantage in producing bottled water, as he can produce more of it with the same amount of resources than Jill.

-Using the Figure Above,if Jack and Jill Specialise and Gain