The Hypothetical Nations Wat and Xat Have the Production Possibilities

question 120

Multiple Choice

$$\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~~~~\text { Wat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 750 & 600 & 450 & 300 & 150 & 0 \\\hline \text { Corn } & 0 & 50 & 100 & 150 & 200 & 250 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { Xat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 2,500 & 2,000 & 1,500 & 1,000 & 500 & 0 \\\hline \text { Corn } & 0 & 100 & 200 & 300 & 400 & 500 \\\hline\end{array}\end{array}$$ The hypothetical nations Wat and Xat have the production possibilities for rice and corn given in the accompanying tables. Assume that Wat originally produced rice and corn at combination C and that
Xat originally produced combination B. If the nations now fully specialize based on comparative
Advantage, the total gains from specialization and trade are

• A) 25 units of rice and 25 units of corn.
• B) 50 units of rice and 50 units of corn.
• C) 100 units of rice and 100 units of corn.
• D) 100 units of rice and 150 units of corn.

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Definitions:

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural cities, and as a member of the Commonwealth of Nations.

Demographic Transition

The shift from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Population Growth

The increase in the number of individuals in a population, often measured through rates of birth and immigration.

GDP PPP

Gross Domestic Product (GDP) measured in terms of the Purchasing Power Parity (PPP), which adjusts for price level differences across countries, providing a more accurate comparison of economic productivity and standards of living.