Multiple Choice
Use the information below to answer the following questions.
Fact 2.3.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour,while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Complete the following sentence.Given Fact 2.3.2,
A) there will be gains from trade,no matter what Brenda and Agnes specialize in,as long as they specialize.
B) there will be gains from trade only if Agnes specializes in the production of Y and Brenda in X.
C) there will be gains from trade only if Agnes becomes faster at producing X.
D) there will be no gains from trade because Agnes has an absolute advantage.
E) there will be gains from trade if Agnes specializes in the production of X and Brenda in Y.
Correct Answer:

Verified
Correct Answer:
Verified
Q62: Use the table below to answer the
Q63: It benefits people to specialize and trade
Q64: The most anyone is willing to pay
Q65: A medical clinic employs 10 workers.Each worker
Q66: Which of the following quotations best illustrates
Q68: Use the figure below to answer the
Q69: Use the information below to answer the
Q70: Use the table below to answer the
Q71: If opportunity costs are increasing,then the production
Q72: Consider the production possibilities frontier in Figure