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Consider the No-Trade Input/output Situation Presented in the Following Table

Question 71

Multiple Choice

Consider the no-trade input/output situation presented in the following table and graph for countries A and B.Assuming that free trade is legal; develop a scenario that will benefit the citizens of both countries. Consider the no-trade input/output situation presented in the following table and graph for countries A and B.Assuming that free trade is legal; develop a scenario that will benefit the citizens of both countries.     A) Country B should make all the textiles and trade with Country A for food. B) Country A should make nothing but textiles and trade with Country B for food. C) Country B should make all the textiles and Country A should make all the food. D) Country B should make nothing but textiles and trade with Country A for food.
Consider the no-trade input/output situation presented in the following table and graph for countries A and B.Assuming that free trade is legal; develop a scenario that will benefit the citizens of both countries.     A) Country B should make all the textiles and trade with Country A for food. B) Country A should make nothing but textiles and trade with Country B for food. C) Country B should make all the textiles and Country A should make all the food. D) Country B should make nothing but textiles and trade with Country A for food.


A) Country B should make all the textiles and trade with Country A for food.
B) Country A should make nothing but textiles and trade with Country B for food.
C) Country B should make all the textiles and Country A should make all the food.
D) Country B should make nothing but textiles and trade with Country A for food.

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