The Accompanying Tables Give Production Possibilities Data for Gamma and Sigma

question 29

Multiple Choice

The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons.
Gamma's production possibilities
$\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline Tea & 120 & 90 & 60 & 30 & 0 \\\hline Pots & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$
Sigma's production possibilities
$\begin{array} { | l | c | c | c | c | c | } \hline & A & B & C & D & E \\\hline Tea & 40 & 30 & 20 & 10 & 0 \\\hline Pots & 0 & 30 & 60 & 90 & 120 \\\hline\end{array}$ Assume that before specialization and trade, Gamma and Sigma both chose production possibility "A) " Now if each specializes according to comparative advantage, the gains from specialization and Trade will be

• A) 40 tons of pots.
• B) 20 tons of tea and 20 tons of pots.
• C) 20 tons of tea.
• D) 40 tons of tea.

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Definitions:

Retested

The process of being tested again to verify results or check for changes over time.

Different Ages

Refers to the variety in the chronological ages of individuals within a population, highlighting diversity in stages of life.

Sandwich Generation

A generation of people who care for their aging parents while supporting their own children.

Aging Parents

The phase in an adult child's life where they may begin to care for, or play a more significant role in the life of, their elderly parents.