Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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