Multiple Choice
Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)
-Refer to the information above to answer this question.If each country totally specializes according to its comparative advantage and the terms of trade are 1 bushel of beans for 1.25 bushels of rye,what will be the gains from trade?
A) 60 bushels of rye and 100 bushels of beans.
B) 25 bushels of rye and 10 bushels of beans.
C) 45 bushels of rye and 10 bushels of beans.
D) There are no gains from trade.
Correct Answer:

Verified
Correct Answer:
Verified
Q44: Table 13.14 shows the output of kumquats
Q45: Below is some data on the output
Q46: Refer to the data above to answer
Q47: On what basis are the gains from
Q48: Below is a graph illustrating the market
Q50: Table 13.14 shows the output of kumquats
Q51: Refer to the data above to answer
Q52: Table 13.14 shows the output of kumquats
Q53: Below is a graph illustrating the market
Q54: All of the following except one are