Multiple Choice
Figure 3-3
Ice cream is measured in kilograms.
-Refer to Figure 3-3. Ben and Jerry were currently both producing at point A on their production possibilities frontier and then Ben decided he would be willing to trade 4 pounds of cones to get 2 pounds of ice cream from Jerry. If both decided to specialize in what they had a comparative advantage in and trade, what would be the gains from trade?
A) 1 pound of cones for Ben and 1 pound of ice cream for Jerry.
B) 1 pound of ice cream for Ben and 1 pound of cones for Jerry.
C) 2 pounds of ice cream for Ben and 2 pounds of cones for Jerry.
D) 2 pounds of ice cream for Ben and 1 pound of cones for Jerry.
Correct Answer:

Verified
Correct Answer:
Verified
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