Multiple Choice
Refer to the accompanying production possibilities tables. Data are in millions of units. Assume that prior to specialization and trade, Germany and the United States both choose production possibility C. Now if each specializes according to its comparative advantage, the resulting gains from
Specialization and trade will be
A) 8 million units of autos.
B) 6 million units of autos.
C) 6 million units of autos and 8 million units of chemicals.
D) 8 million units of autos and 6 million units of chemicals.
Correct Answer:

Verified
Correct Answer:
Verified
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