Suppose That a Worker in Caninia Can Produce Either 2

question 56

Multiple Choice

Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5 blankets or 1 meal per day. Each nation has 10 workers. For many years, the two countries traded, each completely specializing according to their respective comparative advantages. Now war has broken out between them and all trade has stopped. Without trade, Caninia produces and consumes 10 blankets and 40 meals per day and Felinia produces and consumes 25 blankets and 5 meals per day. The war has caused the combined daily output of the two countries to decline by

• A)15 blankets and 35 meals.
• B)25 blankets and 40 meals.
• C)35 blankets and 45 meals.
• D)50 blankets and 80 meals.

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Definitions:

Net Change Column

A column often found in financial reporting that displays the difference between the current period's balance and the previous period's balance.

Daily Stock Report

A document or publication that provides updates, statistics, and analyses on the stock market's performance, typically published every business day.

Par Value

The nominal value of a bond or stock as declared by the issuer.

Dividend Paid

The amount distributed by a corporation to its shareholders from its earnings based on the number of shares each shareholder owns.