Figure 3-1
-Refer to Figure 3-1. Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in. What would happen to the total production of corn?
A)Increase by 1 bushel.
B)Increase by 3 bushels.
C)Increase by 5 bushels.
D)Decrease by 2 bushels.

Question

Figure 3-1 
-Refer to Figure 3-1. Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in. What would happen to the total production of corn?
A)Increase by 1 bushel. 
B)Increase by 3 bushels. 
C)Increase by 5 bushels. 
D)Decrease by 2 bushels.

Quizplus · Accepted Answer

When Cliff and Paul specialize in the product they have a comparative advantage in, they can produce more efficiently. This specialization leads to an increase in the total production of corn by 3 bushels.

Figure 3-1 -Refer to Figure 3-1. Assume That Cliff and Paul Were