Suppose That a Worker in Agland Can Produce Either 10

question 124

Multiple Choice

Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zenland can produce either 5 units of organic grain or 15 units of incense per year. There are 10 workers in Agland and 20 workers in Zenland. Currently the two countries do not trade. Agland produces and consumes 50 units of grain and 10 units of incense per year. Zenland produces and consumes 100 units of grain and no incense per year. The combined output of the two countries is therefore 150 units of grain and 10 units of incense per year. If the two countries decided to trade and completely specialize in producing the good for which each has a comparative advantage, what would the combined yearly output of the two countries be?

• A) 50 units of grain and 40 units of incense
• B) 100 units of grain and 300 units of incense
• C) 150 units of grain and 20 units of incense
• D) 200 units of grain and 150 units of incense

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Definitions:

Shield Grounded

Refers to a technique in which the shield of a cable is connected to ground to protect the signal within from electromagnetic interference.

Discrete Input Module

A component within an automation system that receives and processes digital signals from external sources.

Analog Input Module

A hardware component that receives and converts analog signals into digital data for a control system.