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.
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.
Correct Answer:

Verified
Correct Answer:
Verified
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