Multiple Choice
Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year,and a worker in Zenland can produce either 5 units of organic grain or 15 units of incense per year.There are 10 workers in Agland and 20 workers in Zenland.Currently the two countries do not trade.Agland produces and consumes 50 units of grain and 10 units of incense per year.Zenland produces and consumes 100 units of grain and no incense per year.The combined output of the two countries is therefore 150 units of grain and 10 units of incense per year.If the two countries decided to trade and completely specialize in producing the good for which each has a comparative advantage,what would the combined yearly output of the two countries be
A) 50 units of grain and 40 units of incense
B) 200 units of grain and 150 units of incense
C) 150 units of grain and 20 units of incense
D) 100 units of grain and 300 units of incense
Correct Answer:

Verified
Correct Answer:
Verified
Q9: Figure 3-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt="Figure 3-2
Q36: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt=" -Refer to Table
Q48: The "two-country,two-good" model (sometimes called the 2×2
Q53: Egypt has a comparative advantage in the
Q60: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt=" -Refer to Table
Q91: Differences in opportunity cost allow for gains
Q100: Both Canada and the U.S. can produce
Q112: According to Adam Smith, what should a
Q166: Suppose that a worker in Radioland can
Q194: Why does total output in an economy