Figure 3-3
Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier
-Refer to Figure 3-3.Without trade,Bob produced and consumed 240 tacos and 120 burritos and Enid produced and consumed 100 tacos and 150 burritos.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 260 tacos for 156 burritos.As a result,Bob gained
A) 20 tacos and 24 burritos and Enid gained 40 tacos and 6 burritos.
B) 20 tacos and 36 burritos and Enid gained 160 tacos and 6 burritos.
C) 260 tacos and 144 burritos and Enid gained 140 tacos and 156 burritos.
D) 260 tacos and 156 burritos and Enid gained 260 tacos and 156 burritos.

Question

Figure 3-3
Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier  
-Refer to Figure 3-3.Without trade,Bob produced and consumed 240 tacos and 120 burritos and Enid produced and consumed 100 tacos and 150 burritos.Then,each person agreed to specialize in the production of the good in which they have a comparative advantage and trade 260 tacos for 156 burritos.As a result,Bob gained
A) 20 tacos and 24 burritos and Enid gained 40 tacos and 6 burritos. 
B) 20 tacos and 36 burritos and Enid gained 160 tacos and 6 burritos. 
C) 260 tacos and 144 burritos and Enid gained 140 tacos and 156 burritos. 
D) 260 tacos and 156 burritos and Enid gained 260 tacos and 156 burritos.

Quizplus · Accepted Answer

Bob specializes in tacos and trades 260 tacos for 156 burritos. He ends up with 240 tacos (20 more than before) and 144 burritos (24 more than before). Enid specializes in burritos and trades 156 burritos for 260 tacos. She ends up with 140 tacos (40 more than before) and 144 burritos (6 fewer than before).

Figure 3-3 Bob's Production Possibilities Frontier Enid's Production Possibilities Frontier