Solved

The Following Data Outline Production Choices (A or B) in Two

Question 24

Multiple Choice

The following data outline production choices (A or B) in two nations, Latalia and Trombonia. Latalia has a workforce of 14 and Trombonia has a workforce of 10.

 Output per worker in Latalia  Output per worker in Trombonia  A  B  A  B  Pork (tons)  40 Pork (tons)  80 Beans (tons)  020 Beans (tons)  024\begin{array} { | l | c | c | l | c | c | c | } \hline { \text { Output per worker in Latalia } } & &&& { \text { Output per worker in Trombonia } } \\\hline & \text { A } & \text { B } & & & \text { A } & \text { B } \\\hline \text { Pork (tons) } & 4 & 0 & & \text { Pork (tons) } & 8 & 0 \\\hline \text { Beans (tons) } & 0 & 20 & & \text { Beans (tons) } & 0 & 24 \\\hline\end{array}
-If these two nations specialize in accordance with the principle of comparative advantage:


A) Trombonia will produce beans and Latalia will produce pork
B) Trombonia will produce both beans and pork and Latalia will produce neither
C) Latalia will produce both beans and pork and Trombonia will produce neither
D) Latalia will produce beans and Trombonia will produce pork
E) there will still be no trade between the two countries

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents