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Refer to the Accompanying Production Possibilities Tables

Question 38

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                   Germany Production Possibilities                            (Production Alternatives)   Product ABCDEF Autos 048121620 Chemicals 4032241680                        U.S. Production Possibilities                            (Production Alternatives)   Product ABCDEF Autos 03691215 Chemicals 60483624120\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~\text { Germany Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 4 & 8 & 12 & 16 & 20 \\\hline \text { Chemicals } & 40 & 32 & 24 & 16 & 8 & 0 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~\text { U.S. Production Possibilities } } \\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~\text { (Production Alternatives) } } \\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Autos } & 0 & 3 & 6 & 9 & 12 & 15 \\\hline \text { Chemicals } & 60 & 48 & 36 & 24 & 12 & 0 \\\hline\end{array}\end{array} 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.

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