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Suppose There Are Only 2 Nations,A and B,and Only Two

Question 6

Multiple Choice

Suppose there are only 2 Nations,A and B,and only two goods,x and y.If Nation A produces only x,it can make 12x per day.If Nation A produces only y,it can make 36y per day.If Nation B produces only x,it can make 4x per day.If Nation B produces only y,it can make 12y per day.After trade begins,Nation ________ will specialize in the production of x and Nation ________ will specialize in the production of y.


A) A; B
B) B; B
C) B; A
D) No trade will occur.

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