Countries a and B Currently Consume 400 Units of Food

Multiple Choice

Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Under the theory of comparative advantage

A) The citizens of country A should make food and trade with the citizens of country B for textiles.
B) The citizens of country A should make textiles and trade with the citizens of country B for food.
C) There are no gains from trade in this example.
D) A is twice as good as B at making food and B is twice as good as A at making textiles.