Multiple Choice
Below is the productivity per worker (kilos per day) in the wheat and bean industries of Caledonia and Ibrox.The working population in each country is 16 million people.
-Refer to the data above to answer this question.Suppose that initially each country was self-sufficient in the two products and employed half of their working populations in each industry.If subsequently each country were to totally specialize in the product in which it has a comparative advantage,what would be the subsequent gains from trade?
A) 16 wheat and 16 beans.
B) 16 wheat and 32 beans.
C) 0 wheat and 64 beans.
D) 48 wheat and 32 beans.
Correct Answer:

Verified
Correct Answer:
Verified
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