Suppose That a Worker in Agland Can Produce Either 10

question 38

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 20 workers in Agland and 10 workers in Zenland.Currently the two countries do not trade.Agland produces and consumes 100 units of grain and 20 units of incense per year.Zenland produces and consumes 50 units of grain and no incense per year.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)30 units of grain and 100 units of incense.
• B)30 units of grain and 150 units of incense.
• C)50 units of grain and 90 units of incense.
• D)50 units of grain and 130 units of incense.

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Definitions:

Canary Island

A group of Spanish islands located off the northwest coast of Africa, noted for their unique ecosystems and cultural heritage.

Cultivation

The act of preparing and working on the land to grow crops and plants.

Indian Cultures

Refers to the wide variety of traditions, languages, rituals, and community practices found among the people native to the Indian subcontinent.

Sixteenth Century

The time period from 1501 to 1600, marked by significant global exploration, cultural transformations in Europe, and the beginning of the Reformation.