Multiple Choice
Figure 3-3
Ice cream and cones are measured in kilograms.
-Refer to Figure 3-3. Suppose Ben and Jerry were both producing at point A on their production possibilities frontier and then Ben decided he would be willing to trade 4 kg of cones to get 2 kg of ice cream from Jerry. If both decided to specialize in what they had a comparative advantage in and trade, what would be the gains from trade?
A) 1 kg of cones for Ben and 1 kg of ice cream for Jerry
B) 1 kg of ice cream for Ben and 1 kg of cones for Jerry
C) 2 kg of ice cream for Ben and 2 kg of cones for Jerry
D) 2 kg of ice cream for Ben and 1 kg of cones for Jerry
Correct Answer:

Verified
Correct Answer:
Verified
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