Solved

Refer to the Accompanying Production Possibilities Tables

Question 27

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. 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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions