The Following Data Outline Production Choices (A or B) in Two

question 34

Multiple Choice

The following data outline production choices (A or B) in two nations, Gamma and Sigma. Each nation has a workforce of 10.

$\begin{array}{|l|c|c|l|l|c|c|}\hline{\text { Output per worker in Gamma }} & &&&{\text { Output per worker in Sigma }} \\\hline & \mathrm{A} & \mathrm{B} & & & \mathrm{A} & \mathrm{B} \\\hline \text { Tea } & 120 & 0 & & \text { Tea } & 40 & 0 \\\hline \text { Pots } & 0 & 120 & & \text { Pots } & 0 & 120 \\\hline\end{array}$
-On the basis of this information,we can say that:

• A)Gamma should export both tea and pots to Sigma
• B)Sigma should export tea to Gamma and Gamma should export pots to Sigma
• C)Gamma should export tea to Sigma and Sigma should export pots to Gamma
• D)Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots
• E)Sigma should export both tea and pots to Gamma

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