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The Hypothetical Nations Wat and Xat Have the Production Possibilities

Question 120

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                      Wat’s Production Possibilities  Product ABCDEF Rice 7506004503001500 Corn 050100150200250                                  Xat’s Production Possibilities  Product ABCDEF Rice 2,5002,0001,5001,0005000 Corn 0100200300400500\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~~~~\text { Wat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 750 & 600 & 450 & 300 & 150 & 0 \\\hline \text { Corn } & 0 & 50 & 100 & 150 & 200 & 250 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { Xat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 2,500 & 2,000 & 1,500 & 1,000 & 500 & 0 \\\hline \text { Corn } & 0 & 100 & 200 & 300 & 400 & 500 \\\hline\end{array}\end{array} The hypothetical nations Wat and Xat have the production possibilities for rice and corn given in the accompanying tables. Assume that Wat originally produced rice and corn at combination C and that
Xat originally produced combination B. If the nations now fully specialize based on comparative
Advantage, the total gains from specialization and trade are


A) 25 units of rice and 25 units of corn.
B) 50 units of rice and 50 units of corn.
C) 100 units of rice and 100 units of corn.
D) 100 units of rice and 150 units of corn.

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