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Question 61

Multiple Choice

Use the following to answer questions:
Figure: Countries A and B Use the following to answer questions: Figure: Countries A and B   -(Figure: Countries A and B)  Refer to the figure regarding countries A and B. If each country allocated half of its labor force to the production of each good before trade and were to then each specialize in their comparative advantage and allocate 75 percent of its labor force to the production of that good, world production of Good X would change by _____ and the production of Good Y by _____. A)  40; 50 B)  25; -5 C)  15; -5 D)  50; 40
-(Figure: Countries A and B) Refer to the figure regarding countries A and B. If each country allocated half of its labor force to the production of each good before trade and were to then each specialize in their comparative advantage and allocate 75 percent of its labor force to the production of that good, world production of Good X would change by _____ and the production of Good Y by _____.


A) 40; 50
B) 25; -5
C) 15; -5
D) 50; 40

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