Multiple Choice
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. Assume that each country begins by allocating half its labor force to the production of each good. Through trade with each other, each country could increase its consumption of both goods if Country A moved part of its labor force to the production of Good _____ and Country B moved part of its labor force to the production of Good _____.
A) X; X
B) X; Y
C) Y; Y
D) Y; X
Correct Answer:

Verified
Correct Answer:
Verified
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