Figure 3-3 Ice Cream Is Measured in Kilograms

question 97

Multiple Choice

Figure 3-3
Ice cream is measured in kilograms.
-Refer to Figure 3-3. Ben and Jerry were currently both producing at point A on their production possibilities frontier and then Ben decided he would be willing to trade 4 pounds of cones to get 2 pounds of ice cream from Jerry. If both decided to specialize in what they had a comparative advantage in and trade, what would be the gains from trade?

• A)1 pound of cones for Ben and 1 pound of ice cream for Jerry.
• B)1 pound of ice cream for Ben and 1 pound of cones for Jerry.
• C)2 pounds of ice cream for Ben and 2 pounds of cones for Jerry.
• D)2 pounds of ice cream for Ben and 1 pound of cones for Jerry.

---

Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when a choice is made, essentially what is given up when choosing one option over another.

Brazilian Worker

A Brazilian worker refers to an individual employed in Brazil, often discussed in the context of labor laws, economic conditions, and employment rates within the country.

Columbian Worker

An individual employed in Colombia, potentially referring to labor market conditions specific to the region.

Bushels

A measure of volume that is used primarily for agricultural products, such as grains.