The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be Multiple Choice 40 tons of pots. 20 tons of tea and 20 tons of pots. 20 tons of tea. 40 tons of tea.
The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120 Sigma's production possibilities A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120 Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be Multiple Choice 40 tons of pots. 20 tons of tea and 20 tons of pots. 20 tons of tea. 40 tons of tea.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains Rrom Trade
Section: Chapter Questions
Problem 6PA
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Question
The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons.
Gamma's production possibilities
| A | B | C | D | E | |
| Tea | 120 | 90 | 60 | 30 | 0 |
| Pots | 0 | 30 | 60 | 90 | 120 |
Sigma's production possibilities
| A | B | C | D | E | |
| Tea | 40 | 30 | 20 | 10 | 0 |
| Pots | 0 | 30 | 60 | 90 | 120 |
Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to
Multiple Choice
-
40 tons of pots.
-
20 tons of tea and 20 tons of pots.
-
20 tons of tea.
-
40 tons of tea.
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