Reference: Ref 2-9 (Figure: Countries a & B) Refer to the Figure

Multiple Choice

Reference: Ref 2-9 (Figure: Countries A & B) Refer to the figure regarding countries A &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 _____.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) X; X
B) X; Y
C) Y; Y
D) Y; X