Multiple Choice
Below is production possibilities data for the countries of Mental and Etheric.
-Refer to the information above to answer this question.Suppose that each country was producing combination D before trade but then specializes in the product in which it has a comparative advantage.What would be the total gains from trade?
A) 40 million units of rice cakes.
B) 100 million units of rice cakes.
C) 60 million units of soya milk and 40 million units of rice cakes.
D) 40 million units of soya milk and 60 million units of rice cakes.
E) 20 million units of soya milk.
Correct Answer:

Verified
Correct Answer:
Verified
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