Multiple Choice
Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5 blankets or 1 meal per day. Each nation has 10 workers. For many years, the two countries traded, each completely specializing according to their respective comparative advantages. Now war has broken out between them and all trade has stopped. Without trade, Caninia produces and consumes 10 blankets and 40 meals per day and Felinia produces and consumes 25 blankets and 5 meals per day. The war has caused the combined daily output of the two countries to decline by
A) 15 blankets and 35 meals.
B) 25 blankets and 40 meals.
C) 35 blankets and 45 meals.
D) 50 blankets and 80 meals.
Correct Answer:

Verified
Correct Answer:
Verified
Q51: Table 3-13<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Table 3-13
Q52: Trade between nations is based on absolute
Q53: Figure 3-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Figure 3-2
Q54: In one month, Moira can knit 2
Q55: Table 3-11<br>Assume that Bahamas and Denmark can
Q57: Economists use the term _ to refer
Q58: A production possibilities frontier is a graph
Q59: Trade can benefit everyone in society because
Q60: Figure 3-6<br>The production possibilities frontiers below show
Q61: Total output in an economy increases when