Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If two hundred unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while three hundred skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the two countries will change by
A) five hundred additional catheters and one hundred fewer hammocks.
B) three hundred additional catheters and three hundred additional hammocks.
C) one hundred additional catheters and five hundred additional hammocks.
D) no net change in production of the two goods would occur.
Correct Answer:
Verified
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