Suppose That a Worker in Cornland Can Grow Either 40

question 151

Multiple Choice

Suppose that a worker in Cornland can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Oatland can grow either 5 bushels of corn or 50 bushels of oats per year. There are 30 workers in Cornland and 30 workers in Oatland. If the two countries do not trade, Cornland will produce and consume 600 bushels of corn and 150 bushels of oats, while Oatland will produce and consume 20 bushels of corn and 1300 bushels of oats. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then the combined yearly output of the two countries would increase by

• A)1200 bushels of corn and 50 bushels of oats.
• B)580 bushels of corn and 50 bushels of oats.
• C)50 bushels of corn and 580 bushels of oats.
• D)580 bushels of corn and 1500 bushels of oats.

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