​Exhibit 2-10 Refer Exhibit 2-10

Multiple Choice

​Exhibit 2-10 Refer Exhibit 2-10. Which of the following statements is true?

A) There would be no gains from trade between person A and person B because the opportunity cost of producing one unit of good X (or one unit of good Y) is the same for both persons.
B) Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good X and person B specializes in the production of good Y.
C) Both person A and person B will benefit from specialization and trade as long as person A specializes in the production of good Y and person B specializes in the production of good X.
D) Both person A and person B will benefit from trade as long as person A produces both good X and good Y, and person B produces neither good.
E) Both person A and person B will benefit from trade as long as person B produces both good X and good Y, and person A produces neither good.