The following shows the Production possibilities tables for two countries, Latalia and Trombonia:

-Refer to the above tables. Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely in accordance with comparative advantage, the total gains from specialization and trade will be:
A) 4 tons of beans.
B) 1 ton of pork and 2 tons of beans.
C) 4 tons of pork.
D) 2 tons of pork and 4 tons of beans.
Correct Answer:
Verified
Q21: Assuming labour forces of equal size, the
Q24: The following shows points from straight-line production
Q25: Nations Quirk and Turk can produce aluminum
Q27: Given the following production possibilities schedules, it
Q27: The following is the Production possibilities data
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents